5. Read the WSJ article “20200427_The Federal Reserve Is Changing What It Means to Be a Central Bank – WSJ.pdf” ( see the article in link below)
and discuss the following questions:

(1) What is the projected size of the Federal Reserve balance sheet in absolute terms and as a % of GDP? How does this compare to the Great Depression and World War II?

(2) Why is the Fed’s balance sheet expanding at this pace?

(3) What are some of the risks cited in the article with respect to actions the Federal Reserve is taking?

(4) What steps in the Fed taking to support state and local governments?