Please answer 2) briefly if possible.

Topic - Federal funds rate and its effect on Consumer spending

Independent variable (x) : Federal Funds rate

Dependent variable (y) : the impact on Consumer Spending

2.a) Is the coefficient of linear correlation, r, (the numerical measure of the strength of the linear relationship between two variables) well established?

2.b) Have you already established linear functional forms (Single/Multiple regression).

Single Linear regression: Y = a + bX + u ( Plug in x & y variables and residuals) Multiple regression: Y = a + b₁X₁ ⁺ b₂X₂ + b₃X₃ + ... + b_tX_t + u ( Plug in the regressors e.g b1 x1, b2, x2, ....)