Interest rate is the major tool of monetary policy to control the inflation level, and the shock in the business cycle.

1. Construct two graphs: Graph One - should include the effective Federal Funds rate, Prime Bank Loan Rate; Mortgage Rate; and Automobile Lending Rates. Graph Two - effective Federal Funds Rate, 3 month treasuries constant maturity; 3 year treasuries constant maturity; and 30 year treasuries constant maturity.

Step 1: Find data on the effective Federal Funds Rate. Gather data from Jan, 1972 to the present. Find monthly, not-seasonally adjusted rates. Download into Excel and construct a graph of the Effective Federal Funds Rate.

Step 2. (30%) Find data for the following: - Prime Bank Loan Rate (1972 to the present) - 30 year Conventional Mortgage Rate (monthly, not-seasonally adjusted, Jan, 1972-Apr, 2020) - Automobile Lending Rates from (commercial banks, new autos 48 months loan, from Jan, 1972 to the present)

Step 3. Also find data (from 1981 to the present) for: - 3 month treasuries constant maturity - 3 year tresuries constant maturity - 30 year treasuries constant maturity

These graphs are to be imported into a Word Document.