With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?
A)Most of the resulting increase in the monetary base just flows into holdings of excess reserves.
B)Banks just add to their holdings of excess reserves instead of making loans.
C)The asset purchase program involves only the purchase of short-term government securities.
D)The asset purchase program involves only the purchase of long-term government securities.

Question

Quizplus · Accepted Answer

The Answer of With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?
A)Most of the resulting increase in the monetary base just flows into holdings of excess reserves.
B)Banks just add to their holdings of excess reserves instead of making loans.
C)The asset purchase program involves only the purchase of short-term government securities.
D)The asset purchase program involves only the purchase of long-term government securities.

With the Followings Is NOT One of the Reasons Why