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True or False: The more extensive the borrowing to purchase assets, the more damage an asset price bubble can cause. O False True Among the challenges that the Federal Reserve faces in dealing with asset price bubbles is that its policy instruments can hit only broad targets. As a result, the emerging consensus among economists on asset price bubbles is that it is better to try to mitigate the consequences of bubbles after they burst
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True. The more extensive the borrowing to purchase assets, the more damage an asset price bubble can cause.

Among the challenges that the Federal Reserve faces in dealing with asset price bubbles is that its policy instruments can hit only narrow targets.

As a result, the emerging consensus among economists on asset price bubbles is that it is better to try to mitigate the consequences of bubbles before they burst.

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