The main difference between regular open-market operations and quantitative easing (QE) is:
A. that open-market operations is conducted by the Fed, while quantitative easing is mandated by congress.
B. whether the Fed is trying to increase or decrease interest rates
C. the type and term of the financial assets targeted.
D. whether the Fed is buying or selling financial assets
Answer: C
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The LM curve describes the relationship between interest rates and GDP for which the supply of money is equal to the demand for real balances, holding _____ constant.
A) expectations B) tastes and preferences C) the quantity of money D) expectations, tastes, and the quantity of money
Suppose real GDP for a country is $13 trillion in 2015, $14 trillion in 2016, $15 trillion in 2017, and $16 trillion in 2018. Over this time period, the real GDP growth rate is
A) increasing. B) decreasing. C) constant. D) negative.