The Important Effects of ZIRP, QE, and Operation Twist Include

question 78

Multiple Choice

The important effects of ZIRP, QE, and Operation Twist include the following, except:

• A) The federal government was able to fund huge budget deficits at lower than normal interest rates
• B) The Fed became the federal government's primary lender, financing a huge portion of the budget deficit
• C) Government spending in effect became largely funded by "newly printed" money
• D) The Fed's monetary policy somewhat offset the effects of the federal government's fiscal policy

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Definitions:

Manufacturers

Entities or individuals that produce goods using raw materials and labor, often involving machinery and equipment.

Factory Overhead

Indirect costs related to manufacturing that cannot be directly associated with specific product units, including rent, utilities, and maintenance of equipment.

Labor Costs

The total sum of all wages, benefits, and taxes paid to employees by an employer for work performed.

Period Costs

Expenses that are not directly tied to production activity and are charged to the period in which they are incurred.