In March 2020, the European Central Bank (ECB) expanded its Pandemic Emergency Purchase Programme (PEPP) to increase liquidity in the Eurozone, raising the target of its asset purchases by €600 billion.
Which one of the following is the most likely macroeconomic effect of the European Central Bank's quantitative easing?
A fall in the rate of economic growth
A fall in the money supply
An increase in the rate of inflation
An increase in cyclical unemployment
