The goal of quantitative easing is to _____.
A) increase the prices of (increase the yields of) Treasury bonds in order to control inflation
B) decrease the prices of (increase the yields of) Treasury bonds in order to control inflation
C) increase the prices of (decrease the yields of) Treasury bonds and influence the money supply directly
D) decrease the prices of (increase the yields of) Treasury bonds and influence the money supply directly

Question

Quizplus · Accepted Answer

Quantitative easing aims to increase the prices of Treasury bonds (which decreases their yields) and directly influence the money supply by injecting liquidity into the economy, encouraging lending and investment to stimulate economic activity.

The Goal of Quantitative Easing Is to _____