The quantitative easing operations conducted by the Federal Reserve between 2007 and 2011 resulted in _____ increases in the monetary base and _____ increases in money supply.
A) no; no
B) large; larger
C) large; smaller
D) small; smaller

Question

Quizplus · Accepted Answer

The quantitative easing operations led to large increases in the monetary base (through the purchase of securities by the Federal Reserve) but resulted in smaller increases in the money supply, as not all of the increase in the monetary base translated into a proportional increase in money circulating in the economy.

The Quantitative Easing Operations Conducted by the Federal Reserve Between