Multiple Choice
Quantitative easing may work because
A) interest rate increases are not an option.
B) on net, this increases the effective quantity of liquid assets in the economy.
C) the central bank says they will.
D) open market operations always work at the zero lower bound.
E) it eases the strain on the government surplus.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q6: Quantitative easing occurs when the central bank<br>A)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
Q12: The nominal money demand is defined