a. Regress the money supply on bank reserves. (i.e. Your independent, x, variable is bank reserves, your dependent, y, variable is money supply.) You may accomplish this by doing the work manually, or by using excel's regression function, or by using another statistical software package. Report your results in your answer document.

SUMMARY OUTPUT Regression Statistics Multiple R 0.892548408 R Square 0.796642661 Adjusted R Square 0.796524361 Standard Error 1462.122113 Observations 1721 ANOVA df SS MS F Significance F Regression 1 14396166985 14396166985 6734.1 0 Residual 1719 3674880043 2137801.072 Total 1720 18071047028 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 4450.345821 40.99397348 108.5609772 0 4369.942498 4530.749145 4369.942498 4530.749145 X Variable 1 3.261242463 0.039741412 82.0615645 O 3.183295844 3.339189082 3.183295844 3.339189082