Question

Explain what is meant by the Quantitative Easing that the U.S. Federal Reserve is introducing as...

Explain what is meant by the Quantitative Easing that the U.S. Federal Reserve is introducing as a monetary policy to manage the emerging economic crisis. What are some of the economic concerns with too much quantitative easing?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Quantitative easing is method where interest rates are brought down to zero levels to stimulate market with liquidity and available money supply so that economic growth revives and recession is averted. Here onnwards interest rates are raised gradually once economy recovers.

The biggest drawback being hyperinflation due to low interest rate as people buy more laons and consumptions widen cauisng higher aggregate demand and thus higher inflation.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Describe quantitative easing as a tool of monetary policy? What distinguishes it from the other policy...
Describe quantitative easing as a tool of monetary policy? What distinguishes it from the other policy tools of the Federal Reserve? What was the Fed's objective in implementing quantitative easing?
1. Given the quantitative easing measures put into place by the Federal Reserve, what do you...
1. Given the quantitative easing measures put into place by the Federal Reserve, what do you believe will be the impact on the value of the US dollar? How do you believe this will increase or decrease a U.S. company’s ability to sell their goods or services abroad?
Please describe the goals and objectives of the Federal Reserve? If the Federal Reserve does not...
Please describe the goals and objectives of the Federal Reserve? If the Federal Reserve does not control our country's money supply who does? Please explain. What is meant by the term Quantitative Easing and state whether it is used by the federal government or Federal Reserve?
Some politicians distrust the Federal Reserve and the whole idea of discretionary monetary policy. They believe...
Some politicians distrust the Federal Reserve and the whole idea of discretionary monetary policy. They believe that as an unelected body, the Fed has too much power and too much freedom. please explain whether these politicians will favor a fixed or flexible exchange rate? Please explain how that will address their concerns about discretionary monetary policy.
-If the United States economy is in a recession or slowing down and the Federal Reserve...
-If the United States economy is in a recession or slowing down and the Federal Reserve implements a “quantitative easing” monetary policy. Would the Fed – increase or decrease reserve requirements? - If the United States economy is dealing with high inflation and the Federal Reserve implements a “quantitative tightening” monetary policy. Would the Fed – increase or decrease reserve requirements?
Answer around 300 words (a)   Explain the three monetary tools that the U.S. Federal Reserve System or...
Answer around 300 words (a)   Explain the three monetary tools that the U.S. Federal Reserve System or any other central banks can adopt to fight for an economic recession.                            (b)  Explain three situations when monetary policy is ineffective in fighting for an economic recession.                                                            
If the United States economy is dealing with high inflation and the Federal Reserve implements a...
If the United States economy is dealing with high inflation and the Federal Reserve implements a “quantitative tightening” monetary policy. Would the Fed – increase or decrease the money supply through FOMO? . If the United States economy is in a recession or slowing down and the Federal Reserve implements a “quantitative easing” monetary policy. Would the Fed – increase or decrease the money supply through FOMO
1. What is QE (Quantitative Easing)? Explain QE1, QE2, and QE3. 2. Continuation from #2. As...
1. What is QE (Quantitative Easing)? Explain QE1, QE2, and QE3. 2. Continuation from #2. As a U.S. citizen, what would be the benefits that you can possibly gain given the expansionary monetary policy, such as QE1, QE2, and QE3?
What tool does the U.S. Federal Reserve use to conduct policy? Explain. How does monetary policy...
What tool does the U.S. Federal Reserve use to conduct policy? Explain. How does monetary policy impact the macroeconomy?
Many economists believe that despite all the quantitative easing the Federal Reserve has done, it has...
Many economists believe that despite all the quantitative easing the Federal Reserve has done, it has not worked because of the lack of increase in the Velocity of money? Do You agree? Why or why not?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT