effects of q easing during recession

Question 1

KAA 1

Answer 1

K - increased consumer confidence
An - buying up of assets increases their market value, resulting in increased confidence. consumption up, AD up
Ap - European central bank bought 750 million euros of assets

Question 2

Eval 1

Answer 2

recession may have resulted in minimal consumer and business confidence

Question 3

KAA 2

Answer 3

K - investment in businesses
An - provides financial institutions the ability to loan to businesses. Increased investment resulting in economic growth
Ap -

Question 4

Eval 2

Answer 4

financial institutions may use QE to improve their own financial situation and not increase lending to others