Problem

(a) Plot the data on M1 money stock. (b) Use MegaStat or MINITAB to calculate estimated se...

(a) Plot the data on M1 money stock. (b) Use MegaStat or MINITAB to calculate estimated seasonal indexes and trend. Is there a trend in the deseasonalized data? (c) Make monthly forecasts for 2007. Note: M1 includes currency, travelers checks, demand deposits, and other checkable deposits.  MoneyStock

U.S. Money Stock M1 Component, 2000-2006 ($ billions)

Month

2000

2001

2002

2003

2004

2005

2006

Jan

1,127

1,100

1,191

1,225

1,302

1,361

1,375

Feb

1,097

1,090

1,178

1,225

1,306

1,355

1,362

Mar

1,109

1,111

1,196

1,245

1,338

1,382

1,394

Apr

1,126

1,127

1,197

1,259

1,343

1,369

1,393

May

1,100

1,115

1,186

1,266

1,333

1,369

1,391

Jun

1,102

1,126

1,194

1,284

1,348

1,384

1,378

Jul

1,103

1,140

1,200

1,287

1,339

1,365

1,367

Aug

1,094

1,145

1,182

1,292

1,352

1,377

1,370

Sep

1,089

1,194

1,185

1,286

1,349

1,363

1,347

Oct

1,092

1,159

1,196

1,288

1,351

1,365

1,360

Nov

1,092

1,169

1,205

1,293

1,371

1,373

1,368

Dec

1,112

1,208

1,245

1,332

1,401

1,396

1,388

Source: Federal Reserve Board of Governors, www.federalreserve.gov. Data not seasonally adjusted.

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