Question: 6. True or False? Explain your reasoning. a) Quantitative easing involves the central bank selling long-term securities in order to increase the money supply. b)

6. True or False? Explain your reasoning. a) Quantitative easing involves the central bank selling long-term securities in order to increase the money supply. b) Assuming all else constant, a sudden fall in short-term interest rates that will persist indefinitely is good for bond investors who are investing for the long-run because it causes bond prices to rise. c) Central bankers know how to stop inflation, but have a harder time ending deflation (especially when at the zero lower bound)
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