Which of the Following Is Not a Mechanism Through Which

Multiple Choice

Which of the following is not a mechanism through which Quantitative Easing (QE) could affect the wider economy

A) An announcement effect whereby the mere announcement of a QE programme influences expectations and causes individuals to alter their spending and saving decisions.
B) A direct spending effect whereby cash given to individuals increases their spending
C) An excess M0 effect whereby banks are more willing to lend when their cash balances are large
D) An asset price effect whereby assets purchased through the QE programme tend to rise in price and so influence borrowing and lending decisions in the economy
E) An inflation expectations effect whereby QE raises expectations of future inflation.