In response to already low interest rates doing little to stimulate the economy, the U.S.Federal Reserve began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low.This policy is known as
A)inflation targeting.
B)contractionary monetary policy.
C)securities-bubble deflating.
D)quantitative easing.
E)discretionary monetary policy.

Question

Quizplus · Accepted Answer

Quantitative easing is a monetary policy that involves the central bank buying a large amount of government bonds or other financial assets to inject money into the economy and stimulate growth. The goal is to lower interest rates and increase the supply of credit to boost lending and investment. This policy is often used when interest rates are already very low, and traditional monetary policy tools are no longer effective.

In Response to Already Low Interest Rates Doing Little to Stimulate