The important effects of ZIRP, QE, and Operation Twist include the following, except:
A) The federal government was able to fund huge budget deficits at lower than normal interest rates
B) The Fed became the federal government's primary lender, financing a huge portion of the budget deficit
C) Government spending in effect became largely funded by "newly printed" money
D) The Fed's monetary policy somewhat offset the effects of the federal government's fiscal policy

Question

Quizplus · Accepted Answer

The Fed's monetary policy, including ZIRP, QE, and Operation Twist, was intended to complement and support the federal government's fiscal policy, not offset it.

The Important Effects of ZIRP, QE, and Operation Twist Include