Econ Macro (book Only)
Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
Question
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Chapter 15, Problem 10P
To determine

Difference between ordinary open market purchases and quantitative easing.

Introduction:

Open market purchase refers to the sale and purchase of the government securities by the central bank.

Quantitative easing refers to the purchase of government securities by the central bank with motive of increasing the money supply and decreasing the interest rate.

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