I upload the data that you will need for this work

Part II-C 1. Using the data provided (Data-code-1), compute the ratio of M1 to GDP and the ratio of M2 to GDP. These ratios show how much money people hold relative to total spending in the economy. Plot these ratios over the last 40 years. Have the ratios been steady, or have they risen or fallen? What might explain these trends? 2. The data on interest rates for Treasury bonds (Data-code-2). For the most recent data, compare the rates on 10-year conventional bonds and 10-year inflation- indexed bonds. What do these rates tell us about expectations of future inflation? Read: conventional bonds and inflation-indexed bonds. Part III: Part III-A Use the Demand and Supply analysis of Bond Markets and consider a pri- mary market for bonds. For questions below, first describe in words the pre- dicted shift in the supply and/or demand for bonds in this market and (as far 7 as possible) the resulting predicted effect on the equilibrium bond price and the equilibrium quantity of bonds traded. Then, graphically illustrate your verbal answer. Answers will be evaluated on the basis of persuasive reasoning for shifts in bond demand and/or supply curves, and correct prediction of effects on equi- librium bond price and equilibrium quantity of bonds traded that result from these shifts as given. 1. There is an unexpected increase in people’s wealth. 2. A new ruling allows brokerage firms to reduce their commissions on bond transactions but not on stock transactions. 3. Responding to a speech by the Fed Governor, people now expect higher interest rates in the future. Part III-B (Conduct thorough and careful analysis) 4. Listen to the conversation in the attached bloomberg Financial News Discussion: https://mediaplayer.pearsoncmg.com/assets/9S1elgIRr84WCAhDigLVaIbsyxIuCOkG A. Provide graphical and verbal explanation of the theoretical framework that can be used to support the arguement provided by Robert Sinche in the video from 00:14 - 00:34 seconds and throughout the video about the impact of the changes (as discussed in the conversation) on the economy. Use the yield curve to infer about the impact on the economy. B. Use graphical illustrations we employed in the risk structure of interest rates to explan the changes reported between prime money market funds and government money market funds following the actions of the brokerage firms described in the conversation.