Multiple Choice
Quantitative easing occurs when the central bank
A) increases its interest rate target.
B) purchases long-term assets.
C) performs a helicopter drop.
D) purchases short-term assets.
E) engages in open market operations.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A classical dichotomy refers to the fact
Q2: If an increase in the level of
Q3: To increase the nominal money supply, the
Q4: An open market purchase<br>A)causes decrease in the
Q5: Unpredictable shocks to the financial system<br>A)increase the
Q7: Quantitative easing may work because<br>A)interest rate increases
Q8: An increase in the perceived instability of
Q9: Government printing of money to finance government
Q10: Unconventional monetary policy includes<br>A)money growth targeting.<br>B)negative nominal
Q11: Buying an item with cash would be