The Fed’s bond holdings increased from $900 billion in 2009 to $4.5 Trillion in 2016. The purpose of the Fed’s decision to increase its bond holdings from 2009 to 2016 was to A. to decrease the reserves in the banking system thus engaging in so called “contractionary monetary policy” needed to contract the level of inflation B. contract the money supply to counteract the high rates of unemployment then existing in the United States C. increase the reserves in the banking system to increase bank lending and aggregate demand. D. engage in expansionary fiscal policy
The Fed’s bond holdings increased from $900 billion in 2009 to $4.5 Trillion in 2016. The purpose of the Fed’s decision to increase its bond holdings from 2009 to 2016 was to A. to decrease the reserves in the banking system thus engaging in so called “contractionary monetary policy” needed to contract the level of inflation B. contract the money supply to counteract the high rates of unemployment then existing in the United States C. increase the reserves in the banking system to increase bank lending and aggregate demand. D. engage in expansionary fiscal policy
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter15: Monetary Policy
Section: Chapter Questions
Problem 5WNG
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The Fed’s bond holdings increased from $900 billion in 2009 to $4.5 Trillion in 2016. The purpose of the Fed’s decision to increase its bond holdings from 2009 to 2016 was to
to decrease the reserves in the banking system thus engaging in so called “contractionary monetary policy ” needed to contract the level of inflation
contract the money supply to counteract the high rates of unemployment then existing in the United States
increase the reserves in the banking system to increase bank lending and aggregate demand.
engage in expansionary fiscal policy
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