One Argument in Favor of Quantitative Easing Is That

question 78

Multiple Choice

One argument in favor of quantitative easing is that:

• A) long-term interest rates have more influence over private spending than short-term interest rates.
• B) short-term interest rates have more influence over private spending than long-term rates.
• C) the private sector, not the Federal Reserve, should determine interest rates.
• D) it decreases the budget deficit.

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Definitions:

Executive Agreements

Agreements between the head of government of one state and the government of another that are less formal than treaties and do not require legislative approval.

Senate Approval

A requirement for certain proceedings and decisions, including the ratification of treaties and the confirmation of Cabinet members and other federal officials, needing a majority vote in the Senate.

Foreign Affairs

Activities, policies, and relations between governments or institutions of different countries, including diplomacy, trade agreements, and international partnerships.

Expressed Powers

Powers of the federal government that are specifically listed in the Constitution, giving Congress and other parts of the government authority to undertake certain actions.