Transmission channel of monetary policy

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Reference no: EM131391886

1. Each of the following is a transmission channel of monetary policy, except:

A. The balance-sheet channel B. The tax-impact channel C. The asset-price channel D. The exchange-rate channel.

2. If the target federal funds rate reaches zero the FOMC:

A. Must stop purchasing securities since they cannot lower nominal rates below zero B. Would likely shift their focus to purchasing longer-term securities C. Would likely raise the required reserve rate D. Would likely raise the discount rate

Reference no: EM131391886

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