Economagic is a comprehensive site of free, easily available economic time series data useful for economic research, in particular economic forecasting. Go to the site www.economagic.com and find annual data for M and nominal GDP from 1959 to the most recently available year. You will be able to find both by selecting the St. Louis Fed database. Use the tool called "transform this series" to calculate annual averages. Use these data to answer the following questions:

a. Use a spreadsheet to calculate the velocity of money for each year from 1959 to the most recent year available.

b. How much income did $1 support in 1960? In 1970? In 1980? In 1990? In 2000?

c. What happened to the velocity of money over this time period?

d. What implications does the variability of the velocity of money have for the quantity theory of money?