Question

Examples of QE (Quantitative Easing) can be found on PG 659.
(True/False)

Answer 1

The statement is false. QE refers to the purchasing of long-term government and private mortgage-backed securities by central banks to stimulate aggregate demand. Examples of QE are described in the detailed explanation.

Step-by-step explanation:

The statement 'Examples of QE (Quantitative Easing) can be found on PG 659' is false. The term 'QE' refers to the purchasing of long-term government and private mortgage-backed securities by central banks to stimulate aggregate demand, and it does not pertain to any specific page number in a book. The three episodes of QE mentioned in the reference material are briefly described as follows:

1. QE1: Started in November 2008, the Fed bought $600 billion in mortgage-backed securities from Fannie Mae and Freddie Mac.
2. QE2: Commenced in November 2010, the Fed purchased $600 billion in U.S. Treasury bonds.
3. QE3: Began in September 2012, the Fed initially bought $40 billion of mortgage-backed securities per month, which increased to $85 billion per month in December 2012.