Which of the following is not one of the unconventional monetary policy tools used by the Fed?
A. Operation twist
B. Precommitment strategy
C. Dodd-Frank Act
D. Quantitative easing
Answer: C
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The production function shows that as employment increases, real GDP
A) increases until it reaches potential GDP and then it starts to decrease. B) increases at a decreasing rate. C) decreases at a decreasing rate. D) increases at an increasing rate. E) increases at a constant rate.
In the market for used cars, if there is asymmetric information yet all cars sell for the same price
A) there is an efficiency problem and there are equity implications. B) there is no efficiency problem, but there are equity implications. C) buyers of lemons win at the expense of buyers of good cars. D) there is no efficiency problem and there are no equity implications.