Operation Twist

question 131

Multiple Choice

Operation Twist:

• A) ended the forward commitment policy of the Fed.
• B) involved the Fed simultaneously selling long-term government bonds and buying short-term government bonds.
• C) involved the Fed simultaneously selling short-term government bonds and buying long-term government bonds.
• D) was intended to raise short-term interest rates and lower long-term rates until the two were equal.

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