The Fed, at the End of 2015, Announced Its Intent

question 200

Multiple Choice

The Fed, at the end of 2015, announced its intent to start "normalizing" monetary policy and returning short-term interest rates to their normal range. Its normalization plan had two major tools,

• A) taxation and spending.
• B) discount rate and reserve requirements.
• C) quantitative easing and open-market operations.
• D) raising the interest on excess reserves held at Fed banks and quantitative tightening.

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