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From yesterday's newspaper, The Fed's current monthly purchases of about $80 billion in US Treasuries have kept a lid on government borrowing costs as the

From yesterday's newspaper, "The Fed's current monthly purchases of about $80 billion in US Treasuries have kept a lid on government borrowing costs as the government budget deficit has exploded." What does it mean that the Fed's purchases of Treasury bonds have kept the lid on government borrowing costs? Describe in words what is happening to the IS curve and the LM curve, output, consumption, investment and the money supply.

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