In the Aftermath of the Great Recession of 2007-2009, a New

question 198

Multiple Choice

In the aftermath of the Great Recession of 2007-2009, a new breed of "market monetarists" suggested that the Fed and other central banks should use which of the following to adjust monetary policy?

• A)stock markets
• B)domestic and export markets
• C)predictions markets
• D)labor markets

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Definitions:

Magnitude Issue

Refers to the scale or size of an issue or problem, often implying its significance or impact in a particular context.

Momentum Effect

The tendency for securities that have performed well in the past to continue performing well in the future.

Martingale Effect

A theory in probability suggesting that past events do not influence future ones, often discussed in the context of gambling or investment strategies.

Fad Effect

A temporary period of high demand for a certain product or service, often without a basis in the product's qualities or utility.