The proper monetary policy response to a financial liquidity shortage is
A) an open market sale of government bonds.
B) an increase in the money supply.
C) a helicopter drop of money.
D) an open market purchase of government bonds.
E) quantitative easing.

Question

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The Answer of The proper monetary policy response to a financial liquidity shortage is
A) an open market sale of government bonds.
B) an increase in the money supply.
C) a helicopter drop of money.
D) an open market purchase of government bonds.
E) quantitative easing.

The Proper Monetary Policy Response to a Financial Liquidity Shortage