For data to use in these exercises , go to the Federal Reserve Bank money growth stronger in the short run ( in annual of St . Louis FRED database at research . stlouisfed . org fred lata ) or in the longer run ( using three year averages ) ? 1 . Graph the CPI inflation rate , MI money growth , and What has happened to the link between inflation and M 2 money growth for the United States , using annual money growth during the past decade data since 1959 . ( Find annual growth rates for Decembraph the three - month Treasury bill inte interest rate , the ber to December . ) Also graph the three - year average ten - year government bond interest rate , and the CI the CPI rate of of inflation and the three- year averages of MI inflation rate on the same figure , using data since 1961 growth and M2 growth , starting with 1961 . ( The three Make sure that the units are comparable year average rate of inflation for , say , 1978 is the av age of the inflation rates in 1976 , 1977 , and 1978 a . In general , how are changes in interest rates related Similarly , the three year average money growth rate . changes in inflation ? Why for 1978 is the average of the money growth rates for 6 . Is the three - month rate or the ten- year rate more 976 1977 , and 1978 . ) sensitive to current changes in inflation ? Give an Is the inflation rate more closely related to MI economic explanation . growth or MZ growth ? Is the relationship of inflation to