Quantitative Easing Increases All the Following Except

question 112

Multiple Choice

Quantitative easing increases all the following except

• A)interest rates.
• B)reserves.
• C)the monetary base.
• D)the money supply.
• E)the size of the Fed's balance sheet.

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Definitions:

Nonsatiation

The economic assumption that consumers always prefer more of a good to less, holding everything else constant.

Completeness

In decision theory, a property that states every set of choices can be ranked in an order of preference.

Marginal Rate

Typically refers to the additional cost or benefit received from producing one more unit of a good or service.

Indifference Curve

A graph that shows combinations of goods between which a consumer is indifferent, meaning they derive the same level of satisfaction from each combination.