Problem
1. (How Stable Is Velocity?) What factors have led to changes in the velocity of M1 and M2 over the past 25 years?
2. (Money Supply Versus Interest Rate Targets) In recent years the Fed's monetary target has been the federal funds rate. How does the Fed raise or lower that rate, and how is that rate related to other interest rates in the economy such as the prime rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.