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When the Credit Spread Rises,an Effective Policy Response Might Be

Question 57

Multiple Choice

When the credit spread rises,an effective policy response might be to ________.


A) lower the real interest rate on safe assets
B) prevent the real federal funds rate from falling below zero
C) pursue nonconventional monetary policies to restore the functioning of financial markets
D) announce swift and stern action against those responsible for the financial disruption

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