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2. Retrieve data at the beginning of the last 20 quarters for the three-month Treasury and for the producer price index (ppi) for all companies;
2. Retrieve data at the beginning of the last 20 quarters for the three-month Treasury and for the producer price index (ppi) for all companies; place this data for both in two columns of Excel. Then in separate columns, derive the change in interest rate for both on the quarterly basis. The percentage change in the producer price index on a quarterly basis serves as a measure of inflation. Apply Regression Analysis in Excel to the two columns of percentage change in which the change in interest rate is the dependent variable and the measure of inflation (change in ppi) is the independent variable
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