In response to macroeconomic slowdowns, several central banks have utilized unconventional monetary policy in the form of quantitative easing (QE). All other things being equal, which one of the following combinations is most likely to result from the successful implementation of a QE programme?
Commercial bank reserves: Decrease; Government bond yields: Rise; Prices of financial assets: Fall
Commercial bank reserves: Increase; Government bond yields: Rise; Prices of financial assets: Fall
Commercial bank reserves: Decrease; Government bond yields: Fall; Prices of financial assets: Rise
Commercial bank reserves: Increase; Government bond yields: Fall; Prices of financial assets: Rise
