Test Question

Let’s say you are a central banker and you initiate a major asset purchase program with the intention of increasing employment. If, after two or three months, you observe that employment is actually decreasing, do you:

  1. Infer that your asset purchase program is insufficient, and plan to extend or increase it?
  2. Infer that perhaps your asset purchase program is having the reverse effect to that intended and consider halting it?
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