The Fed Pushed Interest Rates to Artificially Low Levels During

question 99

Multiple Choice

The Fed pushed interest rates to artificially low levels during 2002-2004. The Austrian view predicts that this policy will lead to

• A)excessive investment in long-lasting assets like housing that will eventually prove to be unprofitable and result in recession.
• B)an increase in sound investments that will propel future economic growth.
• C)a reduction in the general level of prices that will throw the economy into a recession.
• D)an increase in aggregate demand that will generate sustainable expansion in both real output and employment.

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Definitions:

Personal Leaning

The individual inclination or tendency towards particular opinions, interests, or areas of knowledge.

Alfred C. Kinsey

An American biologist and sexologist known for his research on human sexuality, notably documented in his Kinsey Reports.

Sexual Behaviors

Actions that are related to or encompassing sexual activity, preferences, and orientation.

Bisexual

A sexual orientation characterized by attraction to both men and women, not necessarily to the same degree or in the same way.