During the Recession of 2007-09, the U.S.Fed

question 42

Multiple Choice

During the recession of 2007-09, the U.S.Fed

• A)carefully reduced interests rates step by step until it achieved its desired target level
• B)wasted a lot of time before it realized how severe the recession actually was, but then responded with massive open market sales
• C)stuck to its monetary growth targets in an effort to calm financial markets
• D)reduced short-term interest rates rapidly until they were close to zero percent
• E)kept unemployment below 8 percent by rapidly increasing money supply

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Definitions:

Apples

A widely cultivated fruit that grows on apple trees, and is consumed worldwide for its sweet flavor.

Oranges

A citrus fruit known for its round shape and orange color, which is rich in vitamin C.

Utilities Possibilities Frontier

Represents the maximum utility levels that two individuals or more can achieve within a given set of resources, emphasizing trade-offs and efficiency.

Efficient

An economic state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.