An economy has fallen into the liquidity trap and the central bank is buying large amounts of
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Question:
An economy has fallen into the liquidity trap and the central bank is buying large amounts of government bonds and doing forward guidance. Consequently, the central bank is ..... ?
A. doing Yield curve control policy (YCC)
B. doing Quantitative easing (QE)
C. monetizing the deficit
D. combining YCC and QE
E. not enough information to provide answer
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