Question

question content area part 1 in march​ 2009, the federal reserve announced a quantitative easing program designed to lower intermediate and​ longer-term interest rates. what effect should this have on the​ dollar/euro exchange​ rate? a. the answer depends on the type of fiscal policy that the united states and the european union implement. b. the euro will appreciate relative to the dollar because demand for assets denominated in u.s. dollars will fall. c. the dollar will appreciate against the euro because the supply of assets denominated in u.s. dollars will decrease. d. a quantitative easing program has no effect on the​ dollar/euro exchange rate.

Answer 1

Due to a decrease in demand for assets denominated in dollars, the euro will gain value relative to the dollar.

What Is Quantitative Easing?

Quantitative easing is a monetary policy in which a central bank, such as the U.S. Federal Reserve, buys securities on the open market in order to lower interest rates and expand the money supply.

New bank reserves are created as a result of quantitative easing, giving banks more liquidity and promoting lending and investment. The Federal Reserve implements quantitative easing policies in the United States.

The effects of quantitative easing policies on a nation's economy are frequently disputed, despite their widespread implementation.

Know more about denominated visit:

https://brainly.com/question/7067665

#SPJ4