The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,

a. expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans.
b. reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply.
c. expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves.
d. reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.


C

Economics

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If you agree to a long-term loan at a specified nominal rate of interest and inflation turns out to be higher than was anticipated,

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Economics