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What is the annual rate of growth of m1 money supply

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In January 2012, the US M1 money supply was $2,200.1 billion. In December 2012 the M1 money supply was $2,440.2 billion.

(a) Use Method One and find an exponential function M1t = cat for the monthly US money supply.

(b) Use the model and estimate the US money supply for months of August and September of 2012.

(c) What is the annual rate of growth of M1 money supply? (Note: you must annualize the monthly rate)

(d) If the actual figure of the money supply for August and September were 2,339.0 and 2,373.8, what is the average percentage error of the model?

Reference no: EM13877034

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