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.Using SPSSa. Provide the regression results and discuss if they make sense based on macroeconomic theoryb. 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 AaaCorpRate1966 6.7 5.131967 7.1 5.511968 8 6.181969 7.1 7.031970 6.8 8.041971 9.5 7.391972 10 7.211973 10.7 7.441974 9.2 8.571975 9.3 8.831976 10.8 8.431977 12.8 8.021978 13.8 8.731979 12.2 9.631980 9.5 11.941981 10.4 14.171982 10.1 13.791983 12 12.041984 14.8 12.711985 15.6 11.371986 11.9 9.021987 9 9.381988 9 9.711989 7.2 9.261990 6.5 9.321991 4.3 8.771992 4.5 8.141993 4.8 7.221994 4.7 7.961995 5.2 7.591996 5.4 7.371997 5.6 7.261998 6.6 6.531999 6.4 7.042000 5 7.622001 6.3 7.082002 7.3 6.492003 8.1 5.672004 8.9 5.632005 9.5 5.242006 9.1 5.592007 8.6 5.56



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