Consider the following statements:

Fed tapering is a component for quantitative easing.

It is adopted at the time of high growth or high inflation.

Which of the statements given above is/are correct?

Question

Reversal of easy monetary policy is called Fed Tapering. Government can adopt Fed Tapering due to high growth or high inflation.
Components of easy monetary policy includes almost zero interest rates and quantitative easing. QE has involved massive purchase of bonds by the Fed with newly created money to keep interest rates low.

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Reversal of easy monetary policy is called Fed Tapering. Government can adopt Fed Tapering due to high growth or high inflation.
Components of easy monetary policy includes almost zero interest rates and quantitative easing. QE has involved massive purchase of bonds by the Fed with newly created money to keep interest rates low.

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