The Main Purpose of the Troubled Asset Relief Program Was

question 40

Multiple Choice

The main purpose of the Troubled Asset Relief Program was to

• A)quickly provide jobs to the unemployed.
• B)shore up shaky financial institutions.
• C)lower the rate of inflation.
• D)demonstrate that only the Fed controlled economic policy.
• E)help out the European economy and boost demand for American exports.

Use financial formulas and functions to calculate present and future values in Excel.

Explain the impact of the time period and interest rate on the present value factor.

Identify when to choose between different financial options based on present value calculations.

Understand the advantages and disadvantages of different transportation modes.

---

Definitions:

Unemployment

Unemployment is the state of being without a job despite actively looking for work, reflecting the portion of the labor force unable to find gainful employment.

Friedman-Phelps Analysis

The Friedman-Phelps analysis introduces the concept of the natural rate of unemployment, arguing that inflation and unemployment rates are not linked in the long term due to adaptive expectations.

Inflation

The pace at which overall prices for goods and services increase, causing the value of money to diminish.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.