In December 2020, the Governing Council of the European Central Bank (ECB) expanded its asset purchase programme, commonly known as quantitative easing.
Which one of the following is the most likely direct economic effect of this quantitative easing?
A reduction in the rate of inflation
An increase in the broad money supply
An increase in the level of unemployment
A decrease in real economic growth
18 exam-style questions on Edexcel A A Level Economics 4.4.3 Role of central banks. Each one has a worked solution and a mark scheme showing where the marks go.