In 2015, one political party suggested a policy of quantitative easing (the creation of money by the central bank). In what circumstances would this policy be least likely to destabilise the macro economy in the short run?
- Awhen the economy was experiencing a high level of inflation
- Bwhen the economy had price stability but there was full employment of the labour force
- Cwhen there existed a deep recession with high levels of unemployment
- Dwhen there was full employment and a current account balance of payments deficit