The Federal Reserve implemented Quantitative Easing and Operation Twist to stimulate the economy and lower unemployment in the short term. These programs increased the money supply and lowered long term interest rates. However, they also increased the national debt significantly, which could have negative long term consequences for economic growth and the federal budget if not addressed.

1. What were the Fed’s goals in implementing Quantitative Easing
( QE ) and Operation Twist ? What are the short and long term
consequences of these monetary programs ?
Discuss the long term implications from the large federal budget
deficits amassed over the past six years and the growth in the
national debt.
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