Recall the Application about the Fed's policy of quantitative easing to answer the following question(s).
-This Application refers to quantitative easing, a policy that occurs when the Fed
A) changes the reserve requirement.
B) sells mortgage-backed securities.
C) purchases long-term securities.
D) raises the discount rate.

Question

Quizplus · Accepted Answer

Quantitative easing occurs when the Fed purchases long-term securities, such as Treasury bonds, from commercial banks in order to increase the money supply and stimulate economic growth.

Recall the Application About the Fed's Policy of Quantitative Easing