One Argument in Favour of Quantitative Easing Is That

question 102

Multiple Choice

One argument in favour 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.

---

Definitions:

Executive Agreements

International agreements entered into by the president that do not require Senate approval, often used in foreign policy.

Formal Treaties

Officially binding agreements between states or nations, governed by international law and formally ratified by the participating entities.

Senate

The upper legislative house in many bicameral parliamentary systems, often tasked with reviewing legislation passed by the lower house.

Delegated Powers

Powers that are explicitly given by the Constitution to the federal government or its branches, allowing it to perform its duties.