35. After you have studied Reading Between the Lines on pp. 202203 answer the following questions. a.

Question:

35. After you have studied Reading Between the Lines on pp. 202–203 answer the following questions.

a. What changes in the monetary base have occurred since October 2008?

b. How does the Fed bring about an increase in the monetary base?

c. How did the increase in the monetary base change the quantities of M1 and M2? Why?

d. How did the change in monetary base influ0ence short-term nominal interest rates? Why?

e. How did the change in monetary base influence long-term nominal interest rates? Why?

f. How did the change in monetary base influence long-term real interest rates? Why?

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