This data set contains data 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.

Provide the regression results and discuss if they make sense based on macroeconomic theory
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 9.2 8.57
1975 9.3 8.83
1976 10.8 8.43
1977 12.8 8.02
1978 13.8 8.73
1979 12.2 9.63
1980 9.5 11.94
1981 10.4 14.17
1982 10.1 13.79
1983 12 12.04
1984 14.8 12.71
1985 15.6 11.37
1986 11.9 9.02
1987 9 9.38
1988 9 9.71
1989 7.2 9.26
1990 6.5 9.32
1991 4.3 8.77
1992 4.5 8.14
1993 4.8 7.22
1994 4.7 7.96
1995 5.2 7.59
1996 5.4 7.37
1997 5.6 7.26
1998 6.6 6.53
1999 6.4 7.04
2000 5 7.62
2001 6.3 7.08
2002 7.3 6.49
2003 8.1 5.67
2004 8.9 5.63
2005 9.5 5.24
2006 9.1 5.59
2007 8.6 5.56