Which of the following is a concern about the consequences of ZIRP,QE,and Operation Twist?
A) Increased government borrowing to fund deficit spending.
B) Increased taxes to pay for the monetary stimulus.
C) The stimulus to aggregate demand would be too sudden and result in runaway inflation.
D) The weakening of the U.S.dollar would worsen the U.S.trade balance.
Correct Answer:
Verified
Q163: Bond prices and interest rates are directly
Q180: The liquidity trap refers to the situation
Q183: A change in the reserve ratio will
Q186: Changes in the interest rate are more
Q189: The federal funds rate target is the
Q196: (Consider This)The Fed's ability to alter the
Q199: Ben Bernanke is the current (2013)chair of
Q200: A restrictive monetary policy reduces investment spending
Q201: When QE2 and Operation Twist were implemented,the
Q205: (Consider This)In March 2010,total bank reserves held
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents