Question

Which of the following statements is not correct?

A. Real GDP growth has remained positive since 2010.

B. Quantitative easing is a relatively new monetary policy tool.

C. Unemployment remained above its natural level after three rounds of quantitative easing.

D. Quantitative easing is a contractionary monetary policy

Answer 1

D) Quantitative easing is a contractionary monetary policy

Step-by-step explanation:

Quantitative easing is the opposite to contractionary. It is an extremely expansionary monetary policy.

Quantitative easing ocurrs when the fed, instead of running regular open-market operations, decides to expand the amounts and types of assets it buys, in order to inject enormous amounts of money into the economy, with the aim of reactivating it.