The Fed used quantitative easing, the purchase of assets from banks and other financial institutions, during the

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The Fed used quantitative easing, the purchase of assets from banks and other financial institutions, during the financial crisis of 2008 and again in 2010 and 2011.

a) Why did it resort to this policy and not simply purchase Treasury securities in the open market?

b) How did quantitative easing affect banks? That is, how did the Fed pay for these assets?

c) What did the Fed assume banks would do with the newly acquired funds?

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Principles Of Macroeconomics The Way We Live

ISBN: 978-1429220200

1st Edition

Authors: Susan Feigenbaum ,R. W. Hafer

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Question Posted: Nov 07, 2024 08:00 AM

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The Fed used quantitative easing, the purchase of assets from banks and other financial institutions, during the

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Principles Of Macroeconomics The Way We Live

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