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During the Financial Crisis of 2007-08, the U

Question 98

Multiple Choice

During the financial crisis of 2007-08, the U.S. central bank lowered its policy rate from 5.25% to 0%. What was the effect on market rates of interest?


A) Market rates increased by 5%.
B) Market rates fell by 5%.
C) Market rates fell below zero.
D) Market rates barely moved at all.

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