a. Outline the transmission mechanisms through which quantitative easing affects the real economy. (20% weight) b. Outline the broad money creation process in the modern economy and the implications for central bank base money. Explain the implications of i. a cut to the policy rate, and ii. quantitative easing for broad money and base money. (20% weight) c. What constraints and market features may limit the amount of broad money created and thus expansionary policy following policies 2.b.i and 2.b.ii? Explain. {10% weight)