In Questions below, you will work with data relevant to the various measures of the money supply. The most relevant data sources here will likely be: https://fred.stlouisfed.org/

Question 1:

By how much did the money supply measured as M2 increase between February 2020 and April 2020? Please utilize FRED's M2 (Monthly, in Billions of Dollars, Not Seasonally Adjusted) data series (series code M2NS) to obtain your data.

Note: Please enter your answer in billions of dollars, rounded to the nearest integer; and do not include the dollar ($) sign. For example, if you think that money supply M2 increased by $1,234.5 billion dollars, you would enter 1235 as your answer.

Question 2:

Examining the historical trajectory of money supply M2, how long did it take for the money supply to increase from $5 trillion to $6 trillion (in years)? Please continue utilizing FRED's M2 (Monthly, in Billions of Dollars, Not Seasonally Adjusted) data series (series code M2NS) to obtain your data.

Note: Please enter your answer as a whole number, rounded up to the nearest whole year. For example, if you think that it took the money supply M2 6 years and 3 months to increase from $5 trillion to $6 trillion, you would round up to 7 years and enter 7 as your answer.

Question 3:

What percentage of the February to April 2020 increase in M2 that you computed in Question 16 can be attributed to an increase in the monetary base (money in circulation)? Please utilize FRED's Monetary Base Total data series (series code BOGMBASE) to obtain your data. Please be mindful of any possible differences in the units of measurement between the two series.

Note: Please enter your answer as a percentage rounded to the nearest whole number; and do not include the percentage (%) sign. For example, you would enter 5.75% as 6.

Question 4:

What percentage of the February to April 2020 increase in M2 that you computed in Question 16 can be attributed to an increase in the money market funds shares (compare 2020Q1 and Q2)? Please utilize FRED's Money Market Funds, Total Financial Assets data series to obtain your data; and be mindful of any possible differences in the units of measurement between this series and your comparison base.

Note: Please enter your answer as a percentage rounded to the nearest whole number; and do not include the percentage (%) sign. For example, you would enter 5.75% as 6.

Question 5:

Based on the quantity theory of money, which of the following statements about the potential effects of rapid increase in money supply M2 in early 2020 is true?

A) If total expenditure did not change, the velocity of circulation had to go down. B) If the velocity of circulation was constant, then either prices or output or both had to go up. C) If output and the velocity of money went down, the effect on prices is unclear. D) All of the above.