Suppose the Trump administration wants to raise the GDP growth to 3.5%. The Fed wants to use monetary policy to help achieve this goal:
How can the Fed achieve this goal by altering the yield curve? Should the Fed buy or sell securities in the market? Securities of what maturity? Explain the mechanism of the effect.
Show how the yield curve would change graphically. Is the change clock-wise or counter-clock-wise?
What determines if your suggested policy would be successful?