Nonconventional Monetary Policy Attempts to Reduce Financial Frictions by ________

question 84

Multiple Choice

Nonconventional monetary policy attempts to reduce financial frictions by ________.

• A)correcting the shortage of liquidity that has made it costly for businesses to invest
• B)purchasing long-term assets,which raises their price and reduces the credit spread
• C)reducing the expected future short-term interest rate
• D)all of the above
• E)none of the above

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Definitions:

Dependent Variable

A variable in an experiment that is affected by changes in the independent variable.

Influenced

Refers to being affected or altered by an external factor or variable.

Sample Regression Line

This is the line obtained from the regression analysis of sample data, used to predict the dependent variable values from the independent variable.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in the independent variable.