In Response to a Severe Recession, the Fed More Than

question 132

Multiple Choice

In response to a severe recession, the Fed more than doubled the monetary base and pushed short-term interest rates to near zero during 2009-2010.  What happened in 2011?

• A) The inflation rate soared to double-digit levels.
• B) Aggregate demand increased and the economy recovered rapidly.
• C) The large budget deficit of the earlier years was transformed into a budget surplus.
• D) The high rate of unemployment continued.

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Definitions:

Body Fat Percentage

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Resale Value

The amount of money that an asset will be sold for at some point in the future.

F Test

A statistical test used to compare the variances of two populations or to test the equality of two or more means in the context of variance.