Quantitative Easing (QE) Differs from Open-Market Purchases in That QE

question 254

True/False

Quantitative easing (QE) differs from open-market purchases in that QE shrinks the assets of the Fed, whereas open market purchases
expand the Fed's assets.

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Definitions:

Operational Definition

A clear, precise description of a variable or condition in terms of the operations or techniques used to measure or manipulate it.

Theory

A coherent group of tested general propositions, commonly regarded as correct, that can be used as principles of explanation and prediction for a class of phenomena.

Operational Definition

A specific description of a concept in terms of the operations or procedures used to measure or identify it.

Testable Hypotheses

Statements made as predictions that can be confirmed or refuted through scientific experiments or observations.