Dollar Under Pressure Amid QE$2$ Speculation

Persistent speculation that the Federal Reserve would soon embark on a fresh program of$$ long$-$term asset

purchaseslong dash

a

second round of quantitative easing or

QE$2$long dash

kept

the dollar under pressure in the foreign exchange market ahead of crucial U$.$S$.$ employment data.

$$Source: ft$.$com, October$7,2010$

What were the arguments for and against quantitative easing in the fall of$2010?$

Question content area bottom

Part $1$

The argument for the Fed contemplating QE$2$ was$\_\_\_\_\_\_\_.$ Arguments against QE$2$ include$\_\_\_\_\_\_\_.$

A$.$

concern that the U$.$S$.$ economy was headed toward an inflationary$$ gap;

the negative impact on unemployment

B$.$

concern that the U$.$S$.$ economy was heading back into$$ recession;

the effects on the U$.$S$.$ dollar and exports

C$.$

concern that the U$.$S$.$ economy was heading back into$$ recession;

inflationary concerns

D$.$

the lack of currency in the U$.$S$.$ economy;

rising interest rates that would slow real GDP growth