Effects of Quantitative Easing on Banks - Unit 2: Economic Indicators and the Business Cycle - AP Macroeconomics

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Effects of Quantitative Easing on Banks

What is the expected impact of quantitative easing (QE) on bank reserves and lending in the economy?

A

Bank reserves increase, Lending decreases

B

Bank reserves decrease, Lending decreases

C

Bank reserves increase, Lending increases

D

Bank reserves decrease, Lending increases

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