The Main Difference Between Quantitative Easing and Credit Easing Is

question 2

Multiple Choice

The main difference between quantitative easing and credit easing is that:

• A)quantitative easing changes the mix of the Fed's holdings, credit easing does not.
• B)credit easing changes the mix of the Fed's holdings, quantitative easing does not.
• C)credit easing shifts long-term interest rates down while quantitative easing shifts them up.
• D)There is no difference since both add credit to the economy.

---

Definitions:

Primary Education

The first stage of formal education, typically involving children from ages 5 to 11.

Federal Government

The national government of a country, which holds the primary authority over its states or provinces and is responsible for national policies and governance.

Economic Stability

A state where an economy experiences steady growth, moderate inflation, and low unemployment, indicating overall health and predictability.

Macroeconomic Policy

Strategies and actions undertaken by a government to regulate and control the economy as a whole, influencing overall economic indicators like inflation, unemployment, and economic growth.