In order to answer Question 3, you need a graph from question 2. Therefore, I listed it as reference, but I need answers to question #3.

In July 2020, an article on reuters.com noted that: "The Fed's total balance sheet size rose.... It was largely due to continued purchases of Treasuries and mortgage-backed securities aimed at keeping financial market conditions easy." A. Why would the Fed's buying Treasury securities and mortgagebacked securities keep "financial market conditions easy"? B. Why would these asset purchases cause the Fed's balance sheet to rise? C. Did the Fed's asset purchases also cause the monetary base to rise? Explain based on the graph in Question 2. Go to the Federal Reserve Economic Data (FRED) website and download the data series for the Monetary Base (BOGMBASE) from January 2000 until the most recent month available. In addition to the levels of the monetary base, also find the percent change from the previous year (choose "Edit Graph" and then, under "Units," choose Percent Change from Year Ago). Graph both the levels and the rates of change of the monetary base. A. Describe how the levels of the monetary base change just before, during, and just after a recession. Is the pattern the same across recessions? Explain why the pattern is likely to appear B. On the rate of change graph, which periods saw the most volatility in the monetary base