Increases in interest rates are often blamed on

With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?

A) Most of the resulting increase in the monetary base just flows into holdings of excess reserves. B) Banks just add to their holdings of excess reserves instead of making loans. C) The asset purchase program involves only the purchase of short-term government securities. D) The asset purchase program involves only the purchase of long-term government securities.

The index of leading economic indicators: a. provide accurate information on the duration of downturns in the economy

b. virtually always predicts downturns in the economy with a lead time of six months. c. can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions. d. provide accurate information on the depth of downturns in the economy.