Which of the Following Was Not a Reason That the Federal

question 209

Multiple Choice

Which of the following was not a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?

• A)The large budget deficit constrained fiscal policy.
• B)The inflated price of Treasury bills made them too expensive to purchase in open market operations.
• C)Only the Federal Reserve acting as the central bank can serve as the lender of last resort.
• D)The Fed was able to act more quickly than Congress.

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Definitions:

Esteem Need

A concept from Maslow's hierarchy of needs that refers to the human desire for respect, self-esteem, and recognition from others.

Maslow's Hierarchy

A theory of human motivation represented as a pyramid with five levels of needs, from basic physiological needs to self-actualization.

Store Loyalty

The likelihood of customers consistently choosing one particular store or brand over competitors, often resulting from positive shopping experiences or satisfaction with products.

Habitual Purchasers

Consumers who buy the same brands or products repeatedly out of habit rather than through active decision-making based on price, quality, or other factors.