One Argument in Favor of Quantitative Easing Is That

question 78

Multiple Choice

One argument in favor of quantitative easing is that:

• A) long-term interest rates have more influence over private spending than short-term interest rates.
• B) short-term interest rates have more influence over private spending than long-term rates.
• C) the private sector, not the Federal Reserve, should determine interest rates.
• D) it decreases the budget deficit.

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Definitions:

Investment Property

Real estate property that has been purchased with the intention of earning a return on the investment through rental income, the future resale of the property, or both.

AASB 140

The Australian Accounting Standards Board regulation relating to the accounting for investment property.

IAS 40

A standard issued by the International Accounting Standards Board related to the accounting for investment property.

AASB 116

An Australian Accounting Standards Board standard detailing the accounting treatment for property, plant, and equipment.