Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 12

Which of the following policies were used in response to the latest financial crisis? Of those used, which are examples of monetary policy? Of fiscal policy?
a. Aggressive controlling of inflation by raising interest rates.
b. Providing short-term financing directly to small businesses to jump-start investment.
c. Bailing out banks that have large amounts of risky mortgage-backed securities.
d. Purchasing long-term bonds to increase the money supply.
e. Raising the Social Security eligibility age by five years to encourage people to work.