Quantitative Easing Is a High-Risk Monetary Policy Tool as It

question 98

Multiple Choice

Quantitative easing is a high-risk monetary policy tool as it runs the risk of ________.

• A) possibly creating deflation
• B) possibly creating inflation and even hyperinflation
• C) having no effect
• D) having very short-term effects

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Definitions:

Chronic Hormone Secretion

The continuous or prolonged release of hormones into the bloodstream, affecting the body's functions over an extended period.

Down-Regulation

A biological process where the number of receptors or the sensitivity of a cell to a molecule decreases in response to an external factor.

Insensitivity

A lack of sensitivity or responsiveness to stimuli or inputs, whether emotional or physical.

Receptor Molecules

Specialized proteins located on or within cells that bind to specific substances, triggering cellular responses.