In September 2012 the Fed Announced That Because of Weak

question 25

Multiple Choice

In September 2012 the Fed announced that because of weak labor market conditions, it would ________ $40 billion of mortgage backed securities per month. Critics of the action said that banks have ________ excessive reserves so the action would be futile.

• A) sell; huge amounts of
• B) buy; huge amounts of
• C) buy; very little
• D) sell; very little

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Definitions:

Operant Conditioning

A form of learning in which behavior increases or decreases based on environmental consequences.

Neurogenesis

The process of generating new neurons in the brain, which continues throughout life in certain areas of the brain.

Experience-dependent

Pertains to a process or change that results from direct exposure to external stimuli or events, emphasizing the role of environment in development.

Cultural Circumstances

The societal, economic, and historical conditions that influence the beliefs, behaviors, and practices of individuals or communities.