Problem of unsustainable investment

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True or False question and give reason why choose true or false

1. To illustrate the problem of unsustainable investment, Woods cites the example from Mises of the bridge builder that runs out of material before reaching the other side of a river.

2. Woods likens the Fed policy of reducing interest rates to getting the builder drunk so he doesn't realize he is running out of bricks.

3. It is illegal for the Fed to buy bonds directly from the U.S. Treasury.

4. It has been suggested that the Fed's QE programs may have been motivated by fears that foreigners would stop buying U.S. Treasuries.

5. It was France that has been most aggressive at trying to undermine the U.S. bond market in an attempt to end the dollar's prominence in world trade.

Reference no: EM131156416

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