HW 4B - ECON 102 MW1 HW 4B 1 What are the macroeconomic...

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ECON 102 MW1 HW 4B 1. What are the macroeconomic trends that did prompt the FOMC to end the QE III but to keep the federal fund rate still at its historic low? You need to give reasons for both of these policy measures.
2. Draw a supply-demand diagram of the Federal funds market, which illustrates the effects of a massive Treasury bill sale by the Fed in the open market.

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