Part 1 is completed, I only need help with the second half of the Homework. I attached the first half.

Part 2

• Use the data to calculate a money velocity measure for the monetary base by dividing the GDP by the monetary base. Define this term as MBV.
• Create a chart including the GDP, monetary base, and new monetary base velocity measure (MBV). Format the chart in the same manner as that used in the prior chart assignment. Number this as Exhibit 2.
• Use the data to calculate a bank lending multiplier by dividing the money supply (M2) by the monetary base. Define this term as BLM (bank lending multiplier).
• Create a second chart including the money supply (M2), monetary base, and the bank lending multiplier (BLM). Be sure to display the bank lending multiplier on the secondary vertical axis. Format the chart in the same manner as used in prior charts. Number this as Exhibit 3.
• Be able to identify each element in both charts
• Be able to provide a description of the behavior of each element in the chart
• Write out a one-to-two sentence answer to each of the following questions.
  • At what point or points does the relationship between the monetary base and GDP appear to change?
  • At what point or points does the relationship between the monetary base and money supply appear to change?
  • What economic conditions were present at the time of these changes?
  • To what degree has expansion of the monetary base created economic growth over the time period covered by the chart?
  • Has this changed over time?
  • To what degree has bank lending behavior affected this outcome?
  • What do these findings suggest about the effectiveness of monetary policy at generating economic growth?
  • What do these findings suggest about bank lending behavior?
  • What do these findings suggest about economic growth in the near future?
• Submission: Open a Word document. Copy and paste your chart into the Word document. Add your written answers to the document below the chart.

Money Supply, Velocity, and Monetary Base Quarterly from 1959 through 2016 (III) St. Louis Money Supply Velocity of Adjusted Quarter (M2) ($MMM) Money (M2V) Monetary Base ($MMM) 1959-01-01 $ 288.50 1.776 $ 38.62 1959-04-01 $ 291.00 1.794 $ 38.76 1959-07-01 $ 295.10 1.774 $ 39.22 1959-10-01 $ 298.40 1.781 $ 39.54 1960-01-01 $ 299.40 1.819 $ 38.85 1960-04-01 $ 300.00 1.802 $ 38.78 1960-07-01 $ 305.50 1.782 $ 39.34 1960-10-01 $ 312.30 1.740 $ 40.03 1961-01-01 $ 317.10 1.726 $ 39.50 1961-04-01 $ 321.00 1.730 $ 39.46 1961-07-01 $ 326.50 1.735 $ 40.12 1961-10-01 $ 334.70 1.745 $ 41.12 1962-01-01 $ 341.20 1.749 $ 40.77 1962-04-01 $ 346.20 1.734 $ 41.10 1962-07-01 $ 351.60 1.728 $ 41.72 1962-10-01 $ 361.30 1.704 $ 42.60 1963-01-01 $ 369.00 1.692 $ 42.39 1963-04-01 $ 374.60 1.681 $ 42.83 1963-07-01 $ 382.20 1.682 $ 43.76 1963-10-01 $ 392.50 1.675 $ 44.83 1964-01-01 $ 398.70 1.688 $ 44.71 1964-04-01 $ 403.00 1.684 $ 45.21 1964-07-01 $ 412.00 1.676 $ 46.23 1964-10-01 $ 423.70 1.655 $ 47.36 1965-01-01 $ 431.50 1.671 $ 47.29 1965-04-01 $ 436.10 1.674 $ 47.72 1965-07-01 $ 444.60 1.682 $ 48.71 1965-10-01 $ 457.80 1.696 $ 50.11 1966-01-01 $ 465.60 1.716 $ 50.21 1966-04-01 $ 468.60 1.717 $ 50.77 1966-07-01 $ 471.70 1.735 $ 51.63 1966-10-01 $ 479.60 1.748 $ 52.48 1967-01-01 $ 486.00 1.743 $ 52.67 1967-04-01 $ 495.70 1.712 $ 53.20 1967-07-01 $ 509.70 1.697 $ 54.33 1967-10-01 $ 523.00 1.694 $ 55.76 1968-01-01 $ 530.50 1.718 $ 55.99 1968-04-01 $ 538.20 1.737 $ 56.66 1968-07-01 $ 549.00 1.733 $ 57.98 1968-10-01 $ 563.60 1.725 $ 59.55 1969-01-01 $ 571.80 1.741 $ 59.76 1969-04-01 $ 576.50 1.753 $ 60.08 1969-07-01 $ 580.10 1.778 $ 60.88 1969-10-01 $ 586.20 1.777 $ 62.20 1970-01-01 $ 587.60 1.792 $ 62.23 1970-04-01 $ 593.70 1.809 $ 63.13 1970-07-01 $ 604.30 1.799 $ 64.60 1970-10-01 $ 620.00 1.757 $ 66.23 Consumer Price Index (CPI) (8284=100) 28.933 29.033 29.233 29.400 29.367 29.533 29.600 29.800 29.800 29.800 29.967 30.000 30.067 30.200 30.333 30.400 30.433 30.533 30.700 30.833 30.900 30.933 31.067 31.167 31.233 31.467 31.600 31.733 31.967 32.333 32.633 32.900 32.933 33.200 33.500 33.800 34.200 34.533 35.000 35.400 35.833 36.433 36.967 37.500 38.000 38.633 39.067 39.600 1971-01-01 1971-04-01 1971-07-01 1971-10-01 1972-01-01 1972-04-01 1972-07-01 1972-10-01 1973-01-01 1973-04-01 1973-07-01 1973-10-01 1974-01-01 1974-04-01 1974-07-01 1974-10-01 1975-01-01 1975-04-01 1975-07-01 1975-10-01 1976-01-01 1976-04-01 1976-07-01 1976-10-01 1977-01-01 1977-04-01 1977-07-01 1977-10-01 1978-01-01 1978-04-01 1978-07-01 1978-10-01 1979-01-01 1979-04-01 1979-07-01 1979-10-01 1980-01-01 1980-04-01 1980-07-01 1980-10-01 1981-01-01 1981-04-01 1981-07-01 1981-10-01 1982-01-01 1982-04-01 1982-07-01 1982-10-01 1983-01-01 1983-04-01 1983-07-01 1983-10-01 1984-01-01 1984-04-01 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 641.20 668.50 685.20 702.70 725.30 746.50 768.40 792.30 812.70 829.50 838.00 847.00 863.70 878.00 884.50 896.40 913.70 951.40 983.50 1,006.10 1,036.70 1,072.70 1,099.10 1,137.90 1,174.20 1,210.60 1,237.60 1,263.00 1,282.40 1,310.40 1,335.40 1,361.40 1,376.20 1,411.20 1,446.00 1,469.70 1,489.90 1,513.10 1,561.00 1,597.40 1,618.10 1,662.30 1,695.40 1,742.60 1,773.30 1,811.80 1,846.60 1,893.20 1,986.40 2,039.10 2,074.40 2,117.90 2,153.90 2,200.60 1.774 1.741 1.721 1.694 1.700 1.708 1.683 1.677 1.698 1.715 1.714 1.742 1.729 1.753 1.768 1.785 1.770 1.746 1.743 1.754 1.756 1.735 1.721 1.703 1.693 1.704 1.716 1.718 1.718 1.784 1.798 1.826 1.836 1.839 1.848 1.862 1.874 1.849 1.833 1.879 1.932 1.903 1.925 1.889 1.842 1.835 1.825 1.806 1.748 1.755 1.780 1.798 1.814 1.822 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 67.02 68.24 69.95 71.21 71.95 73.18 74.77 76.89 78.21 79.80 81.67 83.48 84.65 86.87 88.74 91.19 91.57 93.11 94.68 96.71 96.98 99.12 100.74 103.23 104.02 106.05 108.83 112.04 113.36 115.95 118.89 122.31 122.43 124.40 127.73 131.70 132.45 134.39 138.17 142.44 141.38 144.67 147.13 149.98 150.65 154.18 157.62 162.96 164.70 170.82 175.33 180.58 182.04 186.94 39.900 40.333 40.767 40.967 41.267 41.600 42.000 42.400 42.933 43.900 44.867 45.900 47.200 48.533 50.000 51.500 52.433 53.233 54.367 55.233 55.767 56.467 57.367 58.033 59.033 60.333 61.200 61.867 62.933 64.533 66.067 67.400 69.067 71.467 73.833 75.933 78.933 81.833 83.333 85.533 87.800 89.833 92.367 93.700 94.467 95.900 97.700 97.933 97.867 99.100 100.267 101.167 102.300 103.400 1984-07-01 1984-10-01 1985-01-01 1985-04-01 1985-07-01 1985-10-01 1986-01-01 1986-04-01 1986-07-01 1986-10-01 1987-01-01 1987-04-01 1987-07-01 1987-10-01 1988-01-01 1988-04-01 1988-07-01 1988-10-01 1989-01-01 1989-04-01 1989-07-01 1989-10-01 1990-01-01 1990-04-01 1990-07-01 1990-10-01 1991-01-01 1991-04-01 1991-07-01 1991-10-01 1992-01-01 1992-04-01 1992-07-01 1992-10-01 1993-01-01 1993-04-01 1993-07-01 1993-10-01 1994-01-01 1994-04-01 1994-07-01 1994-10-01 1995-01-01 1995-04-01 1995-07-01 1995-10-01 1996-01-01 1996-04-01 1996-07-01 1996-10-01 1997-01-01 1997-04-01 1997-07-01 1997-10-01 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,233.20 2,288.20 2,347.80 2,389.80 2,443.30 2,484.10 2,513.50 2,580.40 2,646.70 2,710.10 2,745.60 2,770.70 2,788.70 2,823.70 2,867.60 2,923.80 2,952.00 2,982.90 2,994.70 3,015.20 3,072.50 3,138.40 3,179.10 3,206.90 3,238.40 3,268.90 3,304.90 3,343.60 3,351.20 3,370.50 3,392.40 3,398.10 3,396.30 3,430.50 3,410.80 3,430.90 3,441.50 3,473.40 3,471.10 3,483.50 3,481.30 3,490.30 3,484.10 3,521.60 3,579.70 3,622.80 3,661.00 3,706.80 3,735.70 3,787.30 3,834.60 3,876.70 3,929.70 4,001.30 1.831 1.817 1.802 1.798 1.799 1.796 1.795 1.764 1.745 1.726 1.723 1.740 1.757 1.781 1.774 1.780 1.795 1.817 1.845 1.866 1.858 1.839 1.852 1.863 1.860 1.845 1.832 1.838 1.853 1.866 1.880 1.911 1.937 1.956 1.976 1.991 2.004 2.029 2.053 2.088 2.110 2.146 2.163 2.160 2.151 2.156 2.155 2.175 2.181 2.190 2.192 2.206 2.208 2.198 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 190.00 193.00 193.72 198.82 204.69 210.10 210.47 217.19 223.56 230.63 233.78 239.59 242.89 248.95 250.18 257.00 262.14 266.46 266.07 269.80 272.26 276.52 278.87 286.81 293.89 302.41 308.45 315.27 320.56 328.49 333.13 342.56 351.65 364.60 369.67 380.74 391.53 404.68 411.29 420.81 428.23 435.90 438.24 447.37 450.37 455.79 456.24 461.77 469.35 478.07 482.14 488.89 496.58 508.02 104.533 105.300 105.967 107.267 108.033 109.000 109.233 109.000 109.800 110.400 111.633 113.100 114.400 115.367 116.067 117.533 119.100 120.333 121.667 123.667 124.667 125.867 128.033 129.333 131.567 133.700 134.800 135.600 136.667 137.700 138.667 139.800 140.900 141.900 143.100 144.200 144.767 145.767 146.700 147.633 148.933 149.633 150.867 152.200 152.867 153.600 155.000 156.533 157.367 158.500 159.567 160.200 160.833 161.467 1998-01-01 1998-04-01 1998-07-01 1998-10-01 1999-01-01 1999-04-01 1999-07-01 1999-10-01 2000-01-01 2000-04-01 2000-07-01 2000-10-01 2001-01-01 2001-04-01 2001-07-01 2001-10-01 2002-01-01 2002-04-01 2002-07-01 2002-10-01 2003-01-01 2003-04-01 2003-07-01 2003-10-01 2004-01-01 2004-04-01 2004-07-01 2004-10-01 2005-01-01 2005-04-01 2005-07-01 2005-10-01 2006-01-01 2006-04-01 2006-07-01 2006-10-01 2007-01-01 2007-04-01 2007-07-01 2007-10-01 2008-01-01 2008-04-01 2008-07-01 2008-10-01 2009-01-01 2009-04-01 2009-07-01 2009-10-01 2010-01-01 2010-04-01 2010-07-01 2010-10-01 2011-01-01 2011-04-01 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,076.20 4,149.00 4,206.70 4,328.90 4,410.80 4,468.80 4,518.70 4,597.50 4,675.50 4,746.10 4,787.00 4,876.60 5,007.30 5,126.40 5,227.80 5,365.20 5,454.80 5,497.90 5,588.80 5,721.60 5,804.30 5,928.60 6,035.70 6,045.30 6,075.60 6,222.10 6,273.00 6,371.10 6,393.30 6,461.20 6,525.30 6,627.20 6,710.20 6,804.20 6,861.80 6,995.40 7,104.20 7,240.60 7,300.90 7,406.60 7,568.70 7,703.20 7,734.70 8,023.60 8,307.80 8,403.30 8,362.90 8,457.80 8,483.80 8,564.10 8,577.90 8,748.00 8,880.20 9,033.60 2.183 2.169 2.169 2.156 2.146 2.140 2.143 2.161 2.150 2.166 2.157 2.150 2.102 2.076 2.030 1.997 1.987 1.990 1.971 1.943 1.934 1.920 1.923 1.957 1.971 1.961 1.969 1.973 2.002 2.013 2.020 2.019 2.033 2.034 2.022 2.010 2.005 1.998 1.988 1.981 1.942 1.929 1.910 1.812 1.736 1.711 1.711 1.722 1.735 1.743 1.746 1.742 1.721 1.714 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 513.50 519.70 526.59 540.99 550.82 562.84 573.52 609.80 606.25 602.73 605.90 613.64 618.63 628.33 651.80 665.72 679.27 691.67 702.76 714.71 725.89 737.13 744.54 756.26 760.35 769.82 783.21 793.75 797.19 801.10 809.23 819.03 829.29 834.86 834.82 841.20 845.04 848.34 852.43 856.30 855.09 858.49 893.68 1,436.77 1,660.67 1,760.41 1,747.61 2,018.71 2,085.93 2,030.60 2,004.23 2,005.86 2,239.19 2,593.19 161.900 162.767 163.400 163.967 164.600 166.200 167.233 168.267 169.933 171.733 173.100 174.033 175.700 177.533 177.767 177.267 177.900 179.833 180.600 181.167 183.000 183.667 184.567 184.600 186.267 188.933 189.600 190.733 191.933 194.500 196.867 197.867 198.933 202.300 203.433 201.700 203.756 207.662 208.235 209.716 212.100 216.757 219.278 213.075 212.015 214.263 215.718 216.152 217.020 218.051 218.254 218.898 221.666 225.531 2011-07-01 2011-10-01 2012-01-01 2012-04-01 2012-07-01 2012-10-01 2013-01-01 2013-04-01 2013-07-01 2013-10-01 2014-01-01 2014-04-01 2014-07-01 2014-10-01 2015-01-01 2015-04-01 2015-07-01 2015-10-01 2016-01-01 2016-04-01 2016-07-01 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 9,378.30 9,606.70 9,787.20 9,900.70 10,049.50 10,342.80 10,507.50 10,595.20 10,710.90 10,972.00 11,144.50 11,281.10 11,395.90 11,605.80 11,822.60 11,927.30 12,044.60 12,271.70 12,539.00 12,724.50 12,918.90 1.653 1.645 1.638 1.629 1.606 1.578 1.574 1.561 1.556 1.552 1.533 1.532 1.535 1.527 1.509 1.508 1.500 1.487 1.463 1.450 1.439 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,680.89 2,642.96 2,684.37 2,646.46 2,652.52 2,665.33 2,861.21 3,130.07 3,413.73 3,684.04 3,836.96 3,948.93 4,060.41 3,940.95 3,983.59 3,992.44 4,015.21 3,991.63 3,865.95 3,865.01 3,794.54 226.452 226.108 227.907 229.793 230.297 230.380 231.740 232.993 233.874 233.221 234.997 237.772 238.044 236.132 234.849 237.681 238.305 237.233 237.386 240.169 240.968 Homework Round 1 Part 1 Download the raw data in the Excel file entitled Class Assignment 1 data.xlsx. Calculate the value of GDP using the money supply (M2) and velocity (M2V) Create a line chart showing GDP, money supply (M2) and velocity (M2V). For clarity, format the M2V series so that it is measured and that the scale appears on the secondary vertical axis (right side) of the chart. o Format the chart completely in black and white. Use different dash types (i.e., solid versus dotted) to differentiate the lines on the chart. Include a legend at the bottom of the chart that identifies each line type. o Add a title naming this chart as \"Exhibit 1.\" Complete the descriptive title as per the guidelines for formatting an exhibit. o Include properly formatted and worded labels for the primary (left side) and secondary (right side) vertical axes. Be able to explain the identity of each element in the chart. Be able to provide a description of the behavior of each element in the chart. Write out a one-to-two sentence answer to each of the following questions. o At what points does the relationship between GDP and money supply appear to change? o What economic conditions were present at the time of these changes? o To what degree has expansion of the money supply created economic growth over the time period covered by the chart? Has this changed over time? o What do these findings imply about the current state of the economy? o What do these findings imply about the effectiveness of monetary policy in creating economic growth? Submission: Open a Word document. Copy and paste your chart into the Word document. Add your written answers to the document below the chart. Part 2 Use the data to calculate a money velocity measure for the monetary base by dividing the GDP by the monetary base. Define this term as MBV. Create a chart including the GDP, monetary base, and new monetary base velocity measure (MBV). Format the chart in the same manner as that used in the prior chart assignment. Number this as Exhibit 2. Use the data to calculate a bank lending multiplier by dividing the money supply (M2) by the monetary base. Define this term as BLM (bank lending multiplier). Create a second chart including the money supply (M2), monetary base, and the bank lending multiplier (BLM). Be sure to display the bank lending multiplier on the secondary vertical axis. Format the chart in the same manner as used in prior charts. Number this as Exhibit 3. Be able to identify each element in both charts Be able to provide a description of the behavior of each element in the chart Write out a one-to-two sentence answer to each of the following questions. o At what point or points does the relationship between the monetary base and GDP appear to change? o At what point or points does the relationship between the monetary base and money supply appear to change? o What economic conditions were present at the time of these changes? o To what degree has expansion of the monetary base created economic growth over the time period covered by the chart? Has this changed over time? To what degree has bank lending behavior affected this outcome? o What do these findings suggest about the effectiveness of monetary policy at generating economic growth? o What do these findings suggest about bank lending behavior? o What do these findings suggest about economic growth in the near future? Submission: Open a Word document. Copy and paste your chart into the Word document. Add your written answers to the document below the chart. Round 1 Part 1 Exhibit 1 Quarterly GDP, Money Supply and Velocity trend Quarterly from 1959 through 2016 (III) $20,000.00 2.500 $18,000.00 $16,000.00 2.000 $14,000.00 $12,000.00 Value ($MMM) 1.500 $10,000.00 $8,000.00 1.000 Velocity (M2V) $6,000.00 $4,000.00 0.500 $2,000.00 $- 0.000 Quarter Money Supply GDP Velocity The relationship between Money Supply and GDP appear to change in 1st quarter of 1990, after which the money supply seems to be stable, but the GDP increases at the same rate During that period there was a recession in the United States, which explains why the money supply remained same during the period. Economic growth was mainly due to money supply, as we can see that most of the time the growth of money supply is synonymous with the growth in GDP. This has slowed a bit over time, as we see that the gap or the difference in growth of GDP and money supply has widened with time. These findings imply that when the money supply dropped the growth was fueled with increase in velocity of money and in the recent past, the decline in velocity was compensated by higher growth in money supply. This means that currently the economy is growing very well as the money supply is increasing and velocity of money is low. The above findings show that monetary policy which governs the money supply is greatly impactful in determining the direction of GDP or economic growth