Multiple Choice
Some analysts blame the financial crisis of 2008 on Fed policy.They argue that:
A) a restrictive policy lowered aggregate demand and GDP.
B) low interest rates encouraged excessive mortgage borrowing,leading to the housing bubble.
C) the Fed securitized the mortgages into collateralized debt obligations and encouraged excessive risk taking.
D) did not adequately regulate the mortgage market's credit standards for issuing loans as required by the Federal Reserve Act.
Correct Answer:
Verified
Correct Answer:
Verified
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