3. Describe how the balance sheet of the Fed is affected under each of these scenarios (point out changes to both assets and liabilities) and defend your answer: (a) The Fed sells $2 million dollar's worth of government bonds to banks. (b) $3 million dollar's worth of mortgagebacked securities held by the Fed expire and are paid in full by the issuers of those securities. (0) $2 million dollar's worth of mortgagebacked securities held by the Fed expire and only half is paid back; the rest is defaulted on. ((1) Describe now how the balance sheet of bank A is affected under the following scenario (point out changes to both assets and liabilities) and defend your answer: The Fed buys mortgageback securities from bank A