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Author Question: Which of the following is true about a liquidity trap situation: a. Quantitative easing might be a ... (Read 89 times)

s.tung

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on: Jun 30, 2018
Which of the following is true about a liquidity trap situation:
 a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities.
  b. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates.
  c. The Fed cannot easily reduce the fed funds interest rate.
 d. All of the above are true.

Question 2

The development of a financial market is not important in determining the economic growth of a nation.
 a. True
  b. False
  Indicate whether the statement is true or false


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JCABRERA33

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

False


s.tung

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Reply #2 on: Jun 30, 2018
Thank you :)


JCABRERA33

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Reply #3 on: Jun 30, 2018
Happy to help you


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