Which of the following is NOT a difference between quantitative easing (QE) and ordinary expansionary monetary policy?
A) QE involves purchasing a wider range of securities than ordinary monetary policy involves.
B) The target of QE is not always short-term interest rates, which is the target for ordinary monetary policy.
C) QE may involve changes in government purchases and taxes that are not used in ordinary monetary policy.
D) QE involves much larger open market purchases than ordinary monetary policy involves.

Question

Quizplus · Accepted Answer

Quantitative easing (QE) and ordinary expansionary monetary policy both focus on influencing the money supply and interest rates rather than directly changing government purchases and taxes, which are fiscal policy tools, not monetary policy tools.

Which of the Following Is NOT a Difference Between Quantitative