Which of the Following Statements Is Most Correct If the Fed

question 84

Multiple Choice

 Which of the following statements is most correct if the Fed sees no need to engage in expansionary monetary policy? ?

• A) The Fed will likely shrink its balance sheet rapidly.?
• B) Eventually, the Fed will shrink its balance sheet by letting securities it holds expire.?
• C) It will be impossible for the Fed to shrink its balance sheet.?
• D) The Fed is likely to increase the size of its balance sheet.

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