How does open-market sale of treasury bills affect economy, Macroeconomics

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How does open-market sale of treasury bills affect economy

Problem

a) How does an open-market sale of Treasury bills affect the economy?

b) Explain the role of the housing market in the 2008 financial crisis.

c) Suppose that the inflation rate is 2.5%. The unemployment gap is 2%. Use the Taylor rule to estimate the target Federal funds rate.

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Macroeconomics: How does open-market sale of treasury bills affect economy

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Macroeconomics: How does open-market sale of treasury bills affect economy

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