_{--------------------}by the Fed Means That the Fed_{--------------------}

question 48

Multiple Choice

_{--------------------}by the Fed means that the Fed_{--------------------}

• A)Credit easing; bought private securities from financial institutions
• B)Quantitative easing; required private banks to increase their lending to home buyers
• C)Credit easing; made loans directly to home buyers
• D)Quantitative easing; decreased in the required reserve ratio
• E)Credit easing; tried to lower long-term interest rates

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Definitions:

Double-Blind Procedure

A experimental setup in which neither the participants nor the experimenters know who is receiving a particular treatment, preventing bias in the results.

Illusory Correlation

The cognitive bias of perceiving a relationship between two variables even when no such relationship exists.

Placebo Effect

A phenomenon in which a person experiences a physiological or psychological improvement after receiving a treatment with no therapeutic value.

Empirical Approach

A method of inquiry that relies on direct, systematic observation and experimentation as a way to acquire knowledge.