Which one of the following is the most likely consequence of a central bank expanding its asset purchase programme, commonly known as quantitative easing (QE)?
A fall in the market price of government bonds
A rise in the yield of long-term government debt
An increase in the volume of commercial bank lending
An appreciation in the exchange rate of the domestic currency
52 exam-style questions on Edexcel A A Level Economics 2.6 Macroeconomic objectives and policies, covering 2.6.1 Possible macroeconomic objectives, 2.6.2 Demand-side policies, 2.6.3 Supply-side policies, and 2.6.4 Conflicts and trade-offs between objectives and policies. Each one has a worked solution and a mark scheme showing where the marks go.