When the Fed buys assets other than short-term government bonds it is called:
A) the inflation tax.
B) fiscal policy.
C) term auction credit.
D) quantitative easing.
E) seignorage.

Question

Quizplus · Accepted Answer

When the Fed buys assets other than short-term government bonds it is referred to as quantitative easing. This policy is typically employed during times of economic downturns to stimulate lending and investment.

When the Fed Buys Assets Other Than Short-Term Government Bonds