What is quantitative easing?

Understand the Problem

The question is asking for an explanation of quantitative easing, which is an economic policy used by central banks to stimulate the economy by increasing the money supply.

Answer

Quantitative easing is a central bank strategy to buy securities, reduce interest rates, and increase money supply.

Quantitative easing is a monetary policy strategy where central banks, like the Federal Reserve, purchase securities to reduce interest rates and increase the money supply, promoting lending to consumers and businesses.

Answer for screen readers

Quantitative easing is a monetary policy strategy where central banks, like the Federal Reserve, purchase securities to reduce interest rates and increase the money supply, promoting lending to consumers and businesses.

More Information

Quantitative easing aims to stimulate the economy by encouraging more consumer spending and business investment, but it can also lead to increased inflation if not managed carefully.

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