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Prime Loan

Using data from the St. Louis Federal Reserve
(FRED) (http://research.stlouisfed.org/fred2/),

analyze short-term interest rates and the prime

loan rate.

a. Find the most recent values and the values

from the same month 6 years and 10 years

earlier from FRED for the Bank Prime Loan

Rate (MPRIME), the Effective Fed Funds Rate

(FEDFUNDS), and the 3-Month Treasury

Bill: Secondary Market Rate (TB3MS).

b. Using the data found above, describe what

has happened to these short-run interest rates

over these periods.

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