Which of the Following Were Purchased by the Fed as Part

question 57

Multiple Choice

Which of the following were purchased by the Fed as part of its quantitative easing during the credit crisis?

• A)mortgage-backed securities
• B)commercial paper
• C)bonds backed by consumer loans, automobile loans, and credit card loans
• D)All of the above were purchased as part of quantitative easing.

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Definitions:

Consumption

The act of households utilizing goods and services.

Disposable Income

The sum of funds that families can allocate to expenditure and savings once they've paid their income taxes.

MPC

The marginal propensity to consume, which represents the proportion of an increase in income that is spent on consumption rather than being saved.

Saving

The share of earnings not used for immediate spending but saved or invested for future needs.