Author Question: Nonconventional monetary policy attempts to reduce financial frictions by ________. A) correcting ... (Read 42 times)

anjilletteb · **on:** Jun 30, 2018

Nonconventional monetary policy attempts to reduce financial frictions by ________.

A) correcting the shortage of liquidity that has made it costly for businesses to invest
B) purchasing long-term assets, which raises their price and reduces the credit spread
C) reducing the expected future short-term interest rate
D) all of the above
E) none of the above

Question 2

The IS curve shifts to the left when ________.

A) autonomous consumption increases
B) taxes increase
C) autonomous investment increases
D) all of the above
E) none of the above