MZM = Money Supply (Dependent Variable) in billions of dollars

FFUNDS = Federal Funds Rate

CPI = Consumer Price Index

YD = Disposable Income in billions of dollars

TREND = Trend or Observation Number

Suppose we go back to our original model where MZM is the dependent variable and FFUNDS, CPI, YD and TREND are the explanatory variables. Suppose we believe the model changes when we have a Democratic President. These years are:

Carter: January 1977 - December 1980

Clinton: January 1993 - December 2000

Obama:January 2009 - December 2016

Use a dummy variable to test to see whether this belief is correct. Test at the 0.05 level.

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