Operation twist 5 award 1 out of 100 point in

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Operation Twist.
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5. Award: 1 out of 1.00 point In response to the zero lower bound problem: the Fed implemented the zero interest rate policy (ZIRP). Congress approved additional fiscal stimulus in 2010. ***the Fed pursued quantitative easing.*** the Fed ended its forward commitment in order to encourage further lending. 6. Award: 1 out of 1.00 point The objective of Operation Twist was to: ***stimulate aggregate demand by lowering long-term interest rates.*** stimulate aggregate demand by lowering short-term interest rates. reduce inflationary pressure by raising long-term interest rates. reduce inflationary pressure by raising short-term interest rates. 7. Award: 1 out of 1.00 point One of the strengths of monetary policy relative to fiscal policy is that monetary policy: ***can be implemented more quickly.*** is subject to closer political scrutiny. does not produce a net export effect. entails a larger spending income multiplier effect on real GDP. 8. Award: 1 out of 1.00 point Open-market operations refer to: purchases of stocks in the New York Stock Exchange. ***the purchase or sale of government securities by the Fed.*** central bank lending to commercial banks. the specifying of loan maximums on stock purchases.
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