Quantitative Easing Is a High-Risk Monetary Policy Tool as It

question 98

Multiple Choice

Quantitative easing is a high-risk monetary policy tool as it runs the risk of ________.

• A) possibly creating deflation
• B) possibly creating inflation and even hyperinflation
• C) having no effect
• D) having very short-term effects

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Definitions:

Outcomes

The results or consequences of an action, process, or scenario.

Special-Interest Effect

Any political outcome in which a small group (“special interest”) gains substantially at the expense of a much larger number of persons who each individually suffers a small loss.

Government Policy

refers to the actions taken by a government to address issues or achieve goals, which may involve regulations, laws, or spending priorities.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services.