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27. 30 POINTS Assume that the market for Treasury securities cun be represented in terms of two diagrams, one for short-term Treasury debt and the

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27. 30 POINTS Assume that the market for Treasury securities cun be represented in terms of two diagrams, one for short-term Treasury debt and the other for long-term Treasury debt. Price On Short- Term Treasury Debt Short-Term Treasury Debt Price On Long Term Treasury Debt Long-Term Treasury Debt A. 15 Points. Assume that the Federal Reserve decides that it wants to buy and sell Treasury securities in order to increase the price of short-term debt and decrease the price of long-term debt."In terms of the above diagrams (which you should copy to your answer sheet), show how the Federal Reserve could achieve this goal. Also be sure to discuss in words what your diagrams represent. B. Same question but for the U.S. Treasury Department. 15 Points. Assume that the U.S. Treasury decides that it wants to buy and sell Treasury securities in order to increase the price of short-term debt and decrease the price of long- term debt. In terms of the above diagrams (which you should copy to your answer shoet), show how the U.S. Treasury could achieve this goal. Also be sure to discuss in words what your diagrams represent. pter 4(3).ppt

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