For Most of the Remainder of the Decade After the September

Multiple Choice

For most of the remainder of the decade after the September 11th terrorist attacks the Fed maintained a high liquidity, low interest rate environment, which was accompanied by:

A) very little borrowing by business firms, financial institutions, and individuals.
B) a large increase in overseas investments by business firms, financial institutions, and individuals.
C) a massive divestment of assets by business firms, financial institutions, and individuals.
D) a massive reduction of inventory levels by business firms.
E) none of the above