Respuesta :
Answer: Banks have more funds to issue loans to consumers and businesses, which increases consumer and business spending, employment, and economic growth.
Explanation:
In Quantitative easing, Financial institutions buying long-term securities provide new cash to the economy and additionally serve to decrease interest charges through bidding up fixed-profit securities.
What Is Quantitative Easing (QE)?
Quantitative easing (QE) is a shape of unconventional economic coverage wherein a valuable financial institution purchases longer-time period securities from the open marketplace if you want to boom the money supply and inspire lending and investment.
Thus, in this way Federal reserve engages in quantitative easing for increasing the money supply in the economy.
Learn more about Quantitative easing here:
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