1. Graph the three-month Treasury bill interest rate and the unemployment rate, using monthly data since 1961....

Question:

1. Graph the three-month Treasury bill interest rate and the unemployment rate, using monthly data since 1961. If changes in monetary policy are reflected primarily by changes in the short term interest rate, what relationship would you expect to see between these two variables? Does this relationship hold up in the data?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780134896441

10th Edition

Authors: Andrew Abel, Ben Bernanke, Dean Croushore

Question Posted: