In Response to the Financial Crisis of 2007 and the Ensuing

question 273

Multiple Choice

In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities. What impact would quantitative easing have on the monetary base?

• A) The monetary base would increase.
• B) The monetary base would decrease.
• C) The monetary base would not change.
• D) While the monetary base would change, it is impossible to predict in which direction.

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Definitions:

Ainsworth

Mary Ainsworth, known for her work in developmental psychology, especially attachment theory.

Attachment

An emotional bond that forms between individuals, particularly between a child and caregiver, which is crucial for child development and influences relationships in adulthood.

Decades

Periods of ten years, often used to refer to specific historical or cultural epochs.

Universal

Universal describes principles, concepts, or elements that are applicable to all situations without variation or exceptions.