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An Example of Quantitative Easing Is When

Question 115

Multiple Choice

An example of quantitative easing is when:


A) central banks purchase financial assets with longer maturities which in turn causes interest rates to fall and Real GDP to increase.
B) central banks purchase financial assets with short maturities which in turn causes interest rates to fall and Real GDP to decrease.
C) commercial banks purchase financial assets with longer maturities which in turn causes interest rates to rise and Real GDP to increase.
D) central banks purchase financial assets with short maturities which in turn causes interest rates to rise and Real GDP to rise.

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