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1. During normal times, the Fed issues currencyr (a liabilityr for a central bank} and holds short-term government bonds [assets for a central bank}. De-

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1. During normal times, the Fed issues currencyr (a liabilityr for a central bank} and holds short-term government bonds [assets for a central bank}. De- scribe how the Fed's balance sheet changed during the Great Recession. What was the composition of assets and liabilities before the Global Finan- cial Crisis? What was the composition of assets and liabilities after? 2. Describe the concept of Secular Stagnation. If the economy,r was experienc. ing Secular Stagnation1 what would be a potential solution

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