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    Macroeconomics Study Set 10
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    Exam 14: Monetary Policy and the Federal Reserve System
  5. Question
    When the Fed Sells Short-Term Bonds and Buys Long-Term Bonds,it
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When the Fed Sells Short-Term Bonds and Buys Long-Term Bonds,it

Question 73

Question 73

Multiple Choice

When the Fed sells short-term bonds and buys long-term bonds,it is engaging in


A) changing the discount rate.
B) forward guidance.
C) backward guidance.
D) a maturity extension program.

Correct Answer:

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