Which of the following is a difference between "quantitative easing" and ordinary open-market operations?
A. There is no difference between the two policy tools.
B. Open-market operations are done in order to lower interest rates; quantitative easing is
merely intended to increase bank reserves.
C. Quantitative easing is focused exclusively on U.S. government bonds; open-market
operations also include the buying and selling of debt issued by government agencies and
government-sponsored entities.
B. Open-market operations are done in order to lower interest rates; quantitative easing is
merely intended to increase bank reserves.
You might also like to view...
If the expected earnings of an investment project exceed all expenses except interest payments,
A) business firms will not undertake the project. B) business firms will undertake the project and raise prices later. C) business firms will not undertake the project but will borrow the funds. D) consumers will get lower prices.
For which product is the income elasticity of demand most likely to be positive?
A. Cabbage B. Retreaded tires C. Computers D. Used clothing