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Macroeconomics

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Monetary Policy in the 2010 Period

MACRO-HHPYC2

Which of the following is the best definition of "quantitative easing," used by the Federal Reserve in the 2012-2015 period?

A

The purchase by the Federal Reserve of government bonds with the aim of lowering interest rates in the economy.

B

The purchase by the Federal Reserve of a debt issues by government agencies to increase the dollar value of reserves within the economy.

C

A contractionary monetary policy aimed at reducing the money supply and raising interest rates.

D

A policy that was aimed at decreasing long-term interest rates to increase investment, while raising short-term interest rates to help savers.