Multiple Choice
What unusual measures did the Fed take in trying to reduce long-term interest rates during the Financial Crisis of 2007-2009?
A) buying mortgage-backed securities issued by Fannie Mae and Freddie Mac
B) reducing the federal funds rate multiple times
C) issuing its own securities
D) eliminating the discount rate on loans to member banks
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Changes in net worth and liquidity may
Q17: For the goods market to be in
Q20: An increase in the output gap causes
Q28: An autonomous expenditure is one that does
Q29: What is the difference between an autonomous
Q32: An increase in the expected profitability of
Q36: The capacity of a firm can best
Q45: What three parts of the economy are
Q64: How can the difference between the current
Q80: In the IS-MP model,when the Fed increases