Which of the Following Statements About Quantitative Easing Is Most

question 260

Multiple Choice

Which of the following statements about quantitative easing is most accurate?

• A)Quantitative easing occurred in three rounds from 2009 to 2014, with the Fed buying nearly $4 trillion in securities.
• B)Quantitative easing has become one of the permanently recognized tools of monetary policy.
• C)Quantitative easing significantly lowered interest rates in the aftermath of the financial crisis.
• D)Quantitative easing is the new official name for open-market operations.

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Definitions:

Economic Efficiency

An optimal distribution of resources in an economy, where no one can be made better off without making someone else worse off.

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a good or service, reflecting changes in variable cost.

Minimum Acceptable Price

The lowest price at which a seller is willing to sell a product or service, often covering at least the costs of production.

Wages

Payments made to employees based on the hours worked or the amount of work done, often referred to as compensation for labor services rendered.