When the Fed injected newly made money into the economy by buying bonds, it:

Question

Quizplus · Accepted Answer

All of the statements are true. The Fed's action of buying bonds to inject money into the economy is known as quantitative easing. This policy was pursued to avoid a deflationary period similar to Japan's "lost decade" in the 1990s. In the aftermath of the 2008 financial crisis, the Fed injected over $1 trillion of newly made money into the U.S. economy through its quantitative easing programs.

When the Fed Injected Newly Made Money into the Economy