Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

How is a country’s central bank’s policy of quantitative easing (open market purchase of securities) intended to influence the quantity of narrow money and the quantity of broad money?

  • Aeffect on narrow money: increase; effect on broad money: increase
  • Beffect on narrow money: increase; effect on broad money: decrease
  • Ceffect on narrow money: decrease; effect on broad money: increase
  • Deffect on narrow money: decrease; effect on broad money: decrease

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