While Many Analysts Defended the Actions Taken by the Fed

question 150

Multiple Choice

While many analysts defended the actions taken by the Fed and the Treasury to respond to the financial crisis in 2008,others were critical of these actions.The critics were concerned that by not allowing large firms to fail

• A)smaller firms will resent not receiving similar assistance.
• B)stockholders and bondholders of these firms were not allowed to receive the proceeds from the sale of assets that would have occurred if the firms had declared bankruptcy.
• C)there is an increased likelihood that other firms will engage in risky behavior in the future with the expectation that they will also not be allowed to fail.
• D)there will be less competition in the U.S.economy,which could led to higher prices for consumers.

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Definitions:

Reject

In statistical testing, to dismiss the null hypothesis based on evidence that supports the alternative hypothesis.

H0

The notation for the null hypothesis in statistical hypothesis testing, representing no effect or no difference.

Reject

In statistical analysis, to refuse the null hypothesis, concluding there is sufficient evidence to support a significant effect or difference.

H0

Stands for the null hypothesis in statistical hypothesis testing, representing the assumption that there is no significant difference or effect.