ʺAs Part of the Financial Crisis Bailout Plan in 2009

question 293

Multiple Choice

ʺAs part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate.ʺ This is an example of

• A) a microeconomic statement.
• B) an economic model.
• C) a normative statement.
• D) a positive statement.

---

Definitions:

Research And Experimentation

A systematic activity combining both basic and applied research, aimed at discovering solutions to problems or creating new goods and knowledge.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Assumption

An accepted fact or hypothesis considered to be true without proof for the purpose of analysis.

Data Analysis

The process of examining, cleaning, transforming, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision-making.