The feds operating strategy that led to double digit

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57) The Fed’s operating strategy that led to double-digit inflation following the end of World War I was known as A) the free reserves policy. B) the federal-funds targeting strategy. C) the real bills doctrine. D) pegging the money supply. Answer: C 58) The Fed accidentally discovered open market operations in the early 99 59) The Fed accidentally discovered open market operations when 60) In the 1930s, the Fed 61) In the 1930s, the Fed A) did not have enough power to perform the role of lender of last resort. B) raised reserve requirements in three steps in 1936-37. C) was given less authority over reserve requirements. D) all of the above. E) only (A) and (B) of the above. Answer: B 62) During World War II, whenever interest rates would rise and the price of bonds would begin to fall, the Fed would 63) During World War II, the Fed in effect relinquished its control of monetary policy through its policy of 100
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64) Under the free reserves monetary policy of the 1950s and 1960s, the Fed interpreted an increase in free reserves as
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