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Once the Fed had pushed short-term intererest rates to zero, it engaged in several rounds of quantitative easing, purchasing hundreds of billions of dollars' worth

Once the Fed had pushed short-term intererest rates to zero, it engaged in several rounds of quantitative easing, purchasing hundreds of billions of dollars' worth of long-term bonds, which would increase the supply of loanable funds. How was quantitative easing supposed to influence the economy? Choose one: A. Quantitative easing would reduce long-term interest rates, stimulate investment spending, and increase long-run aggregate supply. B. Quantitative easing would reduce long-term interest rates, stimulate investment spending, and decrease aggregate demand. C. Quantitative easing would increase long-term interest rates, decrease investment spending, and decrease aggregate demand. D. Quantitative easing would reduce long-term interest rates, stimulate investment spending, and increase aggregate demand

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