Which of the Following Was a Reason That the Federal

question 34

Multiple Choice

Which of the following was a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?

• A)The inflated price of Treasury bills made them too expensive to purchase in open market operations.
• B)The large budget deficit constrained conventional monetary policy.
• C)The U.S.Treasury was unable to sell Treasury bills in the primary market.
• D)The Fed was able to act more quickly than Congress.

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Definitions:

Income Associated

Revenue that is directly tied to specific activities or sources, such as employment, investments, or business operations.

Deductibility

The quality of an expense being allowed by tax laws to be subtracted from gross income to reduce taxable income.

Moving Expenses

Costs associated with moving for work, which may be deductible under certain conditions for tax purposes.

Pre-Move House Hunting

Expenses incurred while searching for a new residence before relocating for a job, which may be deductible or reimbursable under certain circumstances.