An objective of quantitative easing is to generate:
A) higher inflation expectations.
B) zero inflation expectations.
C) negative inflation expectations.
D) no change in inflation expectations.
E) lower inflation expectations.

Question

Quizplus · Accepted Answer

The objective of quantitative easing is to increase the money supply and lower interest rates, which can in turn lead to higher inflation expectations. This is because the increased money supply and lower interest rates make it easier for businesses and individuals to borrow money, which can lead to increased spending and demand, pushing up prices.

An Objective of Quantitative Easing Is to Generate