This data has been taken from the economic report of the president on interest rate and monetary growth to estimate a model where moody?s aaa corporate bond rate is explained by the percentage change in m2. A. Provide the regression results and discuss if they make sense based on macroeconomic theory b. Is there evidence of serial correlation in this model? explain. C. Calculate an estimate of ? for this model. D. Estimate a gls model to address the issue of serial correlation and report your results. Year m2growthrate aaacorprate 1966 6. 7 5. 13 1967 7. 1 5. 51 1968 8 6. 18 1969 7. 1 7. 03 1970 6. 8 8. 04 1971 9. 5 7. 39 1972 10 7. 21 1973 10. 7 7. 44 1974.



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