The Key Objective of Purchases by the Federal Reserve of Over

question 69

Multiple Choice

The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________.

• A)to avoid the bankruptcy of the issuing firms
• B)to manage expectations
• C)to prevent such firms from being acquired by foreign companies
• D)to stimulate spending by firms and households

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Definitions:

Contingency Table

A tabular method used to summarize the relationship between several categorical variables, showing distribution of frequencies.

Qualitative Variables

Variables that describe or categorize attributes or properties of a subject without using numerical values.

Chi-Square Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in one or more categories.

Expected Frequency

The number of times an event is predicted to occur in a statistical experiment based on the probabilities of outcomes.