M16 Assignment 2: Policy EffectsM16 Assignment 2: Policy Effects

Analyze the data presented inTable 1of theFederal Reserve Statistical Release. Release Date: January 24, 2023

Table 1

Money Stock Measures. Billions of dollars unless otherwise noted.

, based on what you've learned in this module about Federal Research and the impact of monetary policy, answer each of the following questions as completely as possible.

• Describe what happened to the money supply (M1 Seasonally adjusted) from October 2021 to October 2022 from the data presented in the table.(5 pts)
• Using the aggregate demand and supply model, explain how monetary policy affected the economy during this period. (5 pts)