From September 2007 to April 2008, the Fed Lowered the Federal

Multiple Choice

From September 2007 to April 2008, the Fed lowered the federal funds rate from 5.25 percent to 2 percent in a series of steps. The Fed's actions were largely in response to

A) threats to the financial system from the mortgage default crisis.
B) forecasts of higher inflation rates.
C) Chinese refusal to allow their exchange rate to reflect market conditions.
D) pressure from the president to offset contractionary effects of a tax increase.