Question

the Fed began implementing QE3 in September 2012 and ended it in October 2014. The Fed argued that QE3 would work to reduce the unemployment rate. Use the federal funds market, the AD-AS model, and the yield curve, show and explain how QE3 was supposed to impact short and long term interest rates, as well as P, Y, and N according to the Fed.  Discuss why QE3 may not work as advertised.  In other words, what are the limitations of QE?

 

 

 

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