Quantitative easing involves the central bank buying large amounts of governemnt bonds(sometimes other securities) from private sector banks and fund managers.Quantitative easing might increase spending in the economy by

1. driving up bond prices, driving down the interest rates on long terms bonds, putting upward pressure on share prices, and reducing financial costs for business investment.
2. driving up bond prices, driving up the interest rates on long terms bonds, putting upward pressure on share prices, and reducing financial costs for business investment.
3. forcing down bond prices, driving down the interest rates on long terms bonds, putting downward pressure on share prices, and reducing financial costs for business investment.
4. forcing down bond prices, driving down the interest rates on long terms bonds, putting upward pressure on share prices, and reducing financial costs for business investment.