Which of the Following Was Not a Reason That the Federal

question 209

Multiple Choice

Which of the following was not a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?

• A)The large budget deficit constrained fiscal policy.
• B)The inflated price of Treasury bills made them too expensive to purchase in open market operations.
• C)Only the Federal Reserve acting as the central bank can serve as the lender of last resort.
• D)The Fed was able to act more quickly than Congress.

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Definitions:

Extraversion

A personality trait characterized by sociability, assertiveness, excitement-seeking, and positive emotional experiences.

Sociable

Characteristic of enjoying companionship and being friendly.

Biological Approaches

These refer to studying psychological mechanisms and behaviors through the lens of biology, including genetics, neurochemistry, and anatomy.

Heritability Estimates

Statistical measurements that indicate how much of a trait's variation in a population is due to genetic factors.