Economists have long believed that the greater the amount of money printed, the higher the long-term interest rates. Evidence for this view can be found in the corresponding excel worksheet, which gives long -term government bond rate for 31 countries and the growth rate of money supply for each country. Plot the data, and use a regression to find the relation between the money growth and the long-term a. bond interest rate. If a country has zero money growth, what is the predicted long-term bond interest rate? The monetary authorities in your country are considering increasing the money growth rate by 1% from its current level. Predict by how much this will increase the long-term bond interest rate. b. c. 815 e, 778087078486002881559968707223 28 049 5. 6 5 9 8 8 2 7 0 5 8 9 9 2 0 9 0 4 694255200352 28 2 la Section a Intercept Section b. Money growth rate Estimated long-term interest rate Section c. A 1% increase in money growth rate should increase the long term interest rate by Economists have long believed that the greater the amount of money printed, the higher the long-term interest rates. Evidence for this view can be found in the corresponding excel worksheet, which gives long -term government bond rate for 31 countries and the growth rate of money supply for each country. Plot the data, and use a regression to find the relation between the money growth and the long-term a. bond interest rate. If a country has zero money growth, what is the predicted long-term bond interest rate? The monetary authorities in your country are considering increasing the money growth rate by 1% from its current level. Predict by how much this will increase the long-term bond interest rate. b. c. 815 e, 778087078486002881559968707223 28 049 5. 6 5 9 8 8 2 7 0 5 8 9 9 2 0 9 0 4 694255200352 28 2 la Section a Intercept Section b. Money growth rate Estimated long-term interest rate Section c. A 1% increase in money growth rate should increase the long term interest rate by