Recall the Application About Fed Chairman Ben Bernanke's Views on How

question 29

Multiple Choice

Recall the Application about Fed Chairman Ben Bernanke's views on how to fight a liquidity trap to answer the following question(s) .
-According to the Application, future Fed Chairman Ben Bernanke criticized the Bank of Japan for not taking strong enough action when their interest rates fell close to zero. Bernanke argued that the Bank of Japan should have made substantial purchases of ________ and also publicly commit to ________ inflation.

• A) long-term bonds; increasing
• B) long-term bonds; decreasing
• C) short-term bonds; increasing
• D) short-term bonds; decreasing

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Definitions:

Compliance

The act of conforming to a request, rule, or specification.

Resistance

Opposition to change or the refusal to accept new ideas.

Adherence

The extent to which individuals stick to prescribed guidelines, rules, or treatment plans.

Commitment

The state or quality of being dedicated to a cause, activity, or the fulfillment of an obligation or promise.