Some Experts Have Argued That the Fed Contributed to the Housing

question 206

Multiple Choice

Some experts have argued that the Fed contributed to the housing bubble by:

• A)approving the purchase of high-risk assets by banks, even though there was a risk of them defaulting.
• B)lowering interest rates, despite the fact that the Taylor rule indicated keeping them high.
• C)not regulating non bank financial institutions who were coming up with innovative mortgages.
• D)following the Taylor Rule, which during the 2000s indicated that rates should be kept low.

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Definitions:

Historical Significance

The importance assigned to an event, person, or place based on its impact on history, its representative value, or its influence on present and future conditions.

John Dewey's Pragmatism

A philosophical doctrine that emphasizes the practical application of ideas by acting on them to actually test them in human experiences.

Progressive Era

A period in the late 19th and early 20th centuries in the United States during which widespread social, political, and economic reforms were enacted in response to the problems arising from industrialization, urbanization, and corruption.

Political Freedoms

Refers to the rights of individuals in a society to express their political views, engage in political activity, and participate in the governance of their country without undue interference.