Quantitative easing occurs when instead of purchasing only short-term government debt, the Fed buys long-term government debt as well.

Name: Quantitative easing occurs when instead of purchasing only short-term government debt, the Fed buys long-term government debt as well.
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Question

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This statement is true. Quantitative easing involves the purchase of both short-term and long-term government debt by the Fed in order to stimulate the economy and increase liquidity.

Quantitative Easing Occurs When Instead of Purchasing Only Short-Term Government