What was the goal of Operation Twist?
A) to reduce long-term interest rates and increase short-term interest rates
B) to reduce short-term interest rates and increase long-term interest rates
C) to reduce both short-term and long-term interest rates
D) to increase both short-term and long-term interest rates

Question

Quizplus · Accepted Answer

Operation Twist aimed to flatten the yield curve by reducing long-term interest rates while increasing short-term interest rates, thereby stimulating the economy by making long-term borrowing cheaper without stoking short-term inflation.

What Was the Goal of Operation Twist