The Federal Reserve has policy instruments that it can aim directly at a specific category of...

Question

Question

The Federal Reserve has policy instruments that it can aim directly at a specific category of asset price bubble.

	a.	True
	b.	False

Answer 1

Answer #1

Answer

False

The Fed can only use the general tools available and there is no specific policy for particular assets.

The government might make some rules to work with the assets but government also can not control it with a specific policy.

Answer 2

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