Quantitative Method

The correct answer is option 'B', the Quantitative Method.

Explanation:
The Quantitative Method refers to a monetary policy tool used by central banks to control the overall supply of money in the economy. It involves the manipulation of key interest rates and the availability of credit to influence economic growth, inflation, and other macroeconomic factors.

How it works:
The Quantitative Method is primarily implemented through open market operations, which involve the buying and selling of government securities by the central bank. By buying government securities, the central bank injects money into the economy, thereby increasing the money supply. Conversely, by selling government securities, the central bank reduces the money supply.

Impact on sectors of the economy:
The Quantitative Method affects all sectors of the economy as it directly influences interest rates and credit availability. Here's how it impacts different sectors:

1. Businesses:
- Interest rates: When the central bank lowers interest rates through quantitative easing, it becomes cheaper for businesses to borrow money. This encourages investment and stimulates economic activity.
- Credit availability: Quantitative easing increases the availability of credit, making it easier for businesses to access funds for expansion, research, and development, which in turn supports growth.

2. Consumers:
- Interest rates: Lower interest rates incentivize consumers to borrow and spend, as it becomes cheaper to finance purchases such as homes, cars, and appliances.
- Mortgage rates: Quantitative easing has a direct impact on mortgage rates, as it lowers the cost of borrowing for homebuyers. This can lead to increased housing demand and, subsequently, rising property prices.

3. Financial Markets:
- Stock markets: Quantitative easing can boost stock markets as investors seek higher returns on their investments due to lower interest rates on other assets.
- Bond markets: The central bank's buying and selling of government bonds affect bond prices and yields. When the central bank buys bonds, demand increases, pushing prices up and yields down. Conversely, when the central bank sells bonds, prices decline, and yields rise.

4. Inflation and Deflation:
- Quantitative easing aims to stimulate inflation by increasing the money supply and encouraging spending. Inflation can have both positive and negative effects on different sectors of the economy, depending on their ability to pass on increased costs to consumers.

Overall, the Quantitative Method has a broad impact on all sectors of the economy, as it influences interest rates, credit availability, and financial market conditions. It is a powerful tool used by central banks to manage economic growth, inflation, and stability.