Responses
Banks do not have as much funds to issue loans to consumers and businesses, which decreases consumer and business spending, and slows economic growth.
Banks do not have as much funds to issue loans to consumers and businesses, which decreases consumer and business spending, and slows economic growth.
Banks have more funds to issue loans to consumers and businesses, which increases consumer and business spending, employment, and economic growth.
Banks have more funds to issue loans to consumers and businesses, which increases consumer and business spending, employment, and economic growth.
The rate of inflation decreases as the money supply increases, which causes an increase in consumer spending, employment, and economic growth.
The rate of inflation decreases as the money supply increases, which causes an increase in consumer spending, employment, and economic growth.
The rate of inflation decreases as the money supply decreases, which slows economic growth and increases unemployment.
1 answer
The correct response is:
Banks have more funds to issue loans to consumers and businesses, which increases consumer and business spending, employment, and economic growth.
Quantitative easing (QE) typically involves the Federal Reserve purchasing long-term securities to increase the money supply and lower interest rates. This provides banks with more excess reserves, enabling them to issue more loans, thereby encouraging spending and investment, which can boost economic growth and employment.
