Question 3: Monetary Policy (12 points out of 50) With Open Market Operations, the Fed buys or sells govern- ment debt (Treasury bills and bonds) in the open market. If the Fed buys a large amount of Treasury bills and bonds (They used to call this "Quantitative Easing", now it's "Large-Scale Asset Purchases", or just "Purchases"), what change would you expect in Interest Rates and in Inflation. Part A: How would Interest Rates change? Increase or Decrease Please explain why and how this change is happening. Type your answer and explanation here: Part B: How would Inflation change? Increase or Decrease Please explain why and how this change is happening. Type your answer and explanation here