What Is Meant by the Term "Credit Easing

question 87

Multiple Choice

What is meant by the term "credit easing"?

• A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity.
• B) It is a strategy which involves keeping interest rates very low by providing substantial reserves for as long as is necessary to avoid deflation and encourage spending.
• C) It is a strategy which involves lowering the required reserve ratio and lowering the federal funds rate to encourage banks to increase loan creation.
• D) It is a strategy which involves allowing interest rates to rise slowly by providing substantial reserves for as long as is necessary to avoid inflation.

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Definitions:

Sociological Economics

An interdisciplinary approach that analyzes economic behavior through the lens of social structures and cultural influences.

Neoclassical Economics

An economic theory that focuses on how the perception of equilibrium in supply and demand is the key factor in determining price and production levels.

Minimum Wage

The lowest legal hourly pay that employers can compensate their workers, set by government law or policy to ensure a basic standard of living for employees.

Nature of Work

Refers to the inherent characteristics, duties, and responsibilities associated with different types of employment or careers.