One of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the government uses government purchases to stimulate the economy. 1. (15 points) Explain the crowding out effect in detail using a graph for the bond market, the money market, the foreign exchange market, and the AD SRAS LRAS model. 2. (3 points) Explain quantitative easing? 3. (2 points) If the Fed's current policy is quantitative easing, do you think that there is a danger of the government's current fiscal policy being crowded out? Why or Why not? Explanation required for credit