If the Fed Wants to "Prick" an Asset-Pricing Bubble Driven

question 72

Multiple Choice

If the Fed wants to "prick" an asset-pricing bubble driven by a credit boom,what is the primary tool for accomplishing this?

• A) Raising interest rates
• B) Lowering interest rates
• C) Increasing reserve requirements
• D) Taking a short position in the overpriced asset

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