Question: a. What changes in the monetary base have occurred since October 2008? b. How does the Fed bring about an increase in the monetary base?

a. What changes in the monetary base have occurred since October 2008?
b. How does the Fed bring about an increase in the monetary base?
c. How did the increase in the monetary base change the quantities of M1 and M2? Why?
d. How did the change in monetary base influence short-term nominal interest rates? Why?
e. How did the change in monetary base influence long-term nominal interest rates? Why?
f. How did the change in monetary base influence long-term real interest rates? Why?

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a The monetary base skyrocketed by about 12 trillion over the 18 months after October 2008 b The Fed ... View full answer

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