When the Fed Lowered the Discount Rate in Late 2008

question 107

Multiple Choice

When the Fed lowered the discount rate in late 2008, the action was ultimately designed to:

• A)increase the money supply.
• B)increase the prime rate.
• C)decrease the monetary base.
• D)increase the reserve requirement.

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Definitions:

Misses

In a cognitive or perceptual task, failures to detect or respond to stimuli present.

Signal-Detection Theory

A framework used in psychology and cognitive neuroscience to explain how decisions are made under conditions of uncertainty, distinguishing between the ability to discern between information-bearing patterns and random noise.

Dim Light

A low level of illumination; light that is not bright or intense.

Receptors

Specialized cells or proteins in organisms that detect and respond to signals like hormones, neurotransmitters, and sensory stimuli.