Asked by Ashley
If Mary takes money from her savings account and buys a T-bond from Jody with that money, it's:
A. An example of expansionary monetary policy.
B. An example of contractionary monetary policy.
C. An example of neutral (neither expansionary nor contractionary) policy.
D. The same as the Fed buying bonds.
E. An expansionary fiscal policy.
I think I have it narrowed down between A or C, thoughts?
A. An example of expansionary monetary policy.
B. An example of contractionary monetary policy.
C. An example of neutral (neither expansionary nor contractionary) policy.
D. The same as the Fed buying bonds.
E. An expansionary fiscal policy.
I think I have it narrowed down between A or C, thoughts?
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