Initially, Quantitative Easing Was Not Much Help in Creating Economic

question 6

Multiple Choice

Initially, quantitative easing was not much help in creating economic growth because

• A)banks did not lend out the excess reserves that were created by quantitative easing.
• B)the Federal Reserve also increased the required reserve ratio so additional reserves were not available for lending.
• C)the Federal government began to cut spending, which counteracted the expansionary monetary policy.
• D)the expansion of the monetary base was inflationary.

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Definitions:

Oils

Organic substances that are liquid at room temperature and are insoluble in water but soluble in organic solvents.

Fatty Acid Structures

The molecular arrangement of fatty acids, which typically consist of long hydrocarbon chains with a terminal carboxylic acid group; can be saturated or unsaturated.

Acid Base Hydrolysis

A reaction where water and an acid or base catalyze the breakdown of a molecule, often leading to the cleavage of chemical bonds.

Triacylglyceride

A lipid molecule made up of three fatty acids esterified to glycerol, serving as the primary form of energy storage in animals.