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The Term "Quantitative Easing" Refers to a Policy by the Fed

Question 23

Multiple Choice

The term "quantitative easing" refers to a policy by the Fed to


A) massively buy long-term assets in order to directly lower long-term interest rates
B) massively sell short-term assets in order to quickly change short-term interest rates
C) directly appeal to banks to ease credit in order to stimulate investment spending
D) "peg" the interest rate at a pre-determined level through the use of open market operations
E) none of the above

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