Which of the Following Are Reasons That Caused the Fed

question 20

Multiple Choice

Which of the following are reasons that caused the Fed to abandon its practice of setting money supply targets?
I. expiration of the legislation requiring the Fed to do so
II. banking deregulation in the 1980s allowing for MMDAs
III. financial development of retail sweep programs

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

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Definitions:

Ronald Reagan

The 40th President of the United States (1981-1989) known for his economic policies known as "Reaganomics," the end of the Cold War, and conservative political ideology.

Herbert Hoover

The 31st President of the United States (1929-1933), whose term was notably marked by the onset of the Great Depression.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment, deflation, and a significant fall in economic activity.

Economic Expansion

A phase of the business cycle where the economy grows and increases its output, leading to higher employment and income levels.