One of the Key U

question 65

Multiple Choice

One of the key U.S. government interventions to address the economic fallout of the recession of 2008 was

• A) nationalization of a handful of American banks.
• B) creating a Troubled Assets Relief Program (TARP) to give hundreds of millions of dollars to buy toxic assets and inject cash into the nation's biggest banks and corporations.
• C) liquidation of all of the mortgage assets of the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Mortgage Corporation ("Freddie Mac").
• D) a massive income and business tax cut to stimulate business activity.
• E) None of these choices are correct.

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Definitions:

Heart Attack

A medical emergency that occurs when the flow of blood to the heart is blocked, causing heart muscle damage or death.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Rental Price

The cost associated with renting a property, such as an apartment or a car.

Normal Good

A type of good for which demand increases as the income of individuals or the economy increases.