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Please help me solve this question. (25th The European Central Bank (ECB) aims to decrease the risk-free interest rate in Europe by 4%, from roughly

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(25th The European Central Bank (ECB) aims to decrease the risk-free interest rate in Europe by 4%, from roughly 3% to about 1%, for the next 2 to 3 weeks or so. (Note that this is a temporary, short-term change that will last substantially less than one year.) (a) (b) (C) (5th How will the ECB implement this change in the Euro ('3) interest rate? Draw a diagram of the market in which the ECB will intervene in order to implement this policy. (10th Work out the consequences of this ECB policy for the Dollars-per-Euro nominal ex- change rate and for the interest rate in the US. Use the main, two-qudrant diagram devel- oped in class to support your answers. Assume that the US Federal Reserve (\"the Fed\") does not alter its policies in response to the ECB's actions. (10th What can the Fed do to prevent any chance in the Dollars-per-Euro nominal exchange rate following the ECB's actions? What would be the consequences of such a Fed reaction for the US interest rate? Be as precise as possible

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