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Theory of Firms flashcards

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Which is the correct explanation of quantitative easing?

(a) Small niche markets buy government bonds at a lower price in order for them to grow
(b) Commercial banks buy government bonds from the central bank to reduce interest rates
(c) Government buys back government bonds to reduce government budget deficit
(d) Central banks buy government bonds from the private sector to encourage investment and boost aggregate demand
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University of Sydney
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International Relations
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High school A-Level Economics
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