Name: Section: T.A. Name 180.101 ELEMENTS OF MACROECONOMICS Fall, 2011Problem Set #5 Prof. Louis J. MacciniINSTRUCTIONS: Above, write your name, section number and T. A. name. Answer each question in the space provided, or on the back of the same sheet. 1.Suppose the Fed purchases $5 billion worth of government bonds from Bill Gates, who banks at the Bank of America in San Francisco. Show the effects on the balance sheets of the Fed, the Bank of America, and Gates. Does it make any difference if the Fed buys bonds from a bank or an individual?
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