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Q1 suppose you read in the newspaper that all last week the

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Q1. Suppose you read in the newspaper that all last week the Fed conducted open market acquires, and also on Tuesday of last week it lowered the discount rate. What would you say the Fed was up to?

Q2. Calculate Real Rates of Return. If Treasury bills are currently paying 5.7% and the inflation rate is 2.9 percent, what is the approximate real rate of interest? Illustrate the exact real rate?

Reference no: EM13354129

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