Multiple Choice
When the fed substantially increased the reserves of the banking system and short-term interest rates fell to near zero during 2009-2012, which of the following occurred?
A) Nominal GDP grew rapidly.
B) The velocity of the M1 and M2 money supplies decreased sharply.
C) The rate of inflation increased sharply.
D) The S&P 500 index of stock prices declined substantially.
Correct Answer:
Verified
Correct Answer:
Verified
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