Quantitative Easing Occurs When Instead of Purchasing Only Short-Term Government

question 103

True/False

Quantitative easing occurs when instead of purchasing only short-term government debt, the Fed buys long-term government debt as well.

---

Definitions:

Normal Good

A good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.

Complements

Goods that are consumed together because the use or enjoyment of one good enhances the use or enjoyment of the other.

Consumer Income

The total amount of income a consumer earns, influencing their purchasing power and spending patterns.

Edgeworth Box

A visual representation used in economics to show the distribution of resources and the efficiency of trading between two individuals.