Quantitative easing refers to:
A)a gradual reduction in interest rates by the Federal Reserve.
B)looser restrictions on banks' investments in derivatives.
C)a gradual reduction in marginal tax rates.
D)nonstandard monetary policy designed to extend credit in the economy.

Question

Quizplus · Accepted Answer

Quantitative easing is a nonstandard monetary policy used by central banks to stimulate the economy when standard monetary policy has become ineffective. It involves the central bank purchasing government securities or other securities from the market to increase the money supply and encourage lending and investment.

Quantitative Easing Refers To