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4. Answer the following questions related to the FRED. 4.1. To what extent has the Federal Reserve monetized government debt? Plot since 1970 the change
4. Answer the following questions related to the FRED. 4.1. To what extent has the Federal Reserve "monetized" government debt? Plot since 1970 the change from a year ago (measured in billions of dollars) in gross federal debt (FRED code: FYGFD) and the change from a year ago (measured in billions of dollars) in the federal debt held by the Federal Reserve System (FRED code: FDHBFRBN). (In the "Units" box, specify "Change from Year Ago, Billions of Dollars" for both indicators) 4.2. As we discussed during class, there was a sharp decline of the M1 money multiplier in 2008. What caused the drop? Using the indicators for currency (FRED code: CURRSL), total reserve balances maintained (FRED code: RESBALNS), reserve balances required (FRED code: RESBALREQ), and checkable deposits (FRED code: TCDSL), plot since 2000 the currency-to- deposit ratio and the excess reserve-to-deposit-ratio. Which one caused the M1 money multiplier to plunge
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