Explain the mechanics of expansionary monetary policy in termsof open market operations and the impact on interest rates,consumption and investment. What is quantitative easing (QE), andwhat are some pros and cons of using this non-traditional monetarypolicy approach?
An xxxxxxxxxxxy xxxxxxxy xxxxxy increases xxx supply xx xxxxy,xxxxx xxx Central xxxx implements xy xxxx xxxxxx purchase xxxxxxxxxxxx securities. xx xxxxxy xx money xxxxxxxxx, interest xxxxxxxxx. xxxxx xxxxxxxx rate xxxxxx consumption xxxxxx xxx xxxxxxxxxxxxxxxx, which xxxxxx aggregate xxxxxx xx xxx economy.