In the medium run, a reduction in inflation causes A) a ...

[Brittanyd9008]

In the medium run, a reduction in inflation causes
 
  A) a reduction in the opportunity cost of holding money.
  B) an increase in the opportunity cost of holding money.
  C) no change in the opportunity cost of holding money.
  D) individuals to switch from holding money to bonds and reduce their real money balances.

Question 2

Which of the following is not correct about quantitative easing?
 
  A) It is one of the conventional monetary policy tools.
  B) It refers to the Fed's asset purchasing program.
  C) It helped reduce term premium on long-term government bonds.
  D) As a result, the balance sheet of the Fed is much larger than it was before the crisis.

[abro1885]

Answer to Question 1

A

Answer to Question 2

A

[Brittanyd9008]

Thanks for the timely response, appreciate it

[bigsis44]

Excellent