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Unformatted text preview: real economic activity in the short run depends on the private sector reaction to interest rate changes. 2. Go to the CANSIM data base and retrieve data for the Canadian 90 day Treasury bill rate and real GDP over the period 1975 to the present. You will need to convert the monthly data on the interest rate to quarterly frequency. Plot the interest rate with the rate of growth of GDP and comment on the short run relationship be between these two variables. 3. Go to the CANSIM data base and retrieve data on the money supply as measured by M1B and the Consume Price Index. Calculate the real money stock and plot the growth rate of this variable variable. Can you relate this to any economic events, and to your discussion from question 2? 4. Do question Application Question #1, Chapter 11, pages 231-232 of the text book. ********...
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This note was uploaded on 12/01/2010 for the course ECON 303 taught by Professor Tracey during the Spring '08 term at University of Calgary.
- Spring '08