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Author Question: Explain the three channels economists have identified through which quantitative or credit easing ... (Read 87 times)

CQXA

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on: Jun 30, 2018
Explain the three channels economists have identified through which quantitative or credit easing may affect the economy.
 
  What will be an ideal response?

Question 2

Suppose bank A has assets of 100, liabilities of 60, and capital of 40. Its capital ratio is
 
  A) 40.
  B) 66.
  C) 25.
  D) 60.


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sylvia

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Reply #1 on: Jun 30, 2018
Answer to Question 1

1 ) When arbitrage fails, credit easing can work. 2 ) Quantitative easing may affect expectations of future nominal interest rates. 3 ) Quantitative easing may affect expectations of inflation.

Answer to Question 2

A


CQXA

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Reply 2 on: Jun 30, 2018
:D TYSM

Bigfoot1984

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Reply 3 on: Yesterday
Wow, this really help

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