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Computer models that use "functional economic areas" framework of regional modelling

Abbreviated Question: 
Computer models that use "functional economic areas" framework of regional modelling
Answer: 

Any subnational economic modeling includes two challenging components: data and structure.  Detailed subnational data for the US is automatically suspect because input-output tables are not collected at any subnational level.  Interstate (domestic) trade is also a problem.  (A small price to pay for the interstate-commerce clause: no state or municipal-level customs clearance => no data).  The Commodity Flow Survey is the only source for domestic trade and there are significant problems with these data.  They are not designed to measure source-destination trade a

What is quantitative easing?

Abbreviated Question: 
What is quantitative easing?
Answer: 

Let me try to answer your question by breaking it down.

“In other words, let's just say for simplicity that all US Banks spent $1 Trillion to buy bonds 5 years ago (so 5 years ago, $1 Trillion was taken out of an economic system)”.

Can large banks borrow funds at close to 0% interest from the Fed and then buy US bonds paying higher rates?

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Can large banks borrow funds at close to 0% interest from the Fed and then buy US bonds paying higher rates?
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Yes, large banks can in principle borrow funds at close to 0% from the FED and turn around and invest them on higher paying US bonds. But, when large banks do this, they push up the market price of these US bonds (being large players in the market). With the same cash flows from a bond, a higher market price implies a lower yield to maturity or interest rate on the bond. Thus, with efficient markets, the kind of arbitrage opportunities you are pointing out are eliminated.

How is the GDP growth rate measured?

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How is the GDP growth rate measured?
Answer: 

Hello, and thank you for sending us a question! The GDP growth rate is measured relative to last year’s GDP. Usually the Growth numbers that make headlines on the news are of what economists usually call “Real GDP,” meaning that it is already corrected for changes in prices (inflation).