Question: 20. Expansionary Monetary Policy and Inflation Between 2007 and 2012, assets on the Feds balance sheet increased from $0.9 trillion to $2.9 trillion. Why didnt

20. Expansionary Monetary Policy and Inflation Between 2007 and 2012, assets on the Fed’s balance sheet increased from

$0.9 trillion to $2.9 trillion. Why didn’t the resulting increase in bank reserves create higher inflation as of 2012?

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