During the Financial Crisis of 2007-2009, Why Did the Federal

question 69

Multiple Choice

During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?

• A)The federal funds rate had already been increased as much as possible.
• B)The discount rate had already been increased as much as possible.
• C)The federal funds rate had already been reduced to zero.
• D)The discount rate had already been reduced to zero.

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Definitions:

Resentment

A feeling of bitterness or indignation experienced as a result of unfair treatment or perceived injustice.

Mass Society Theory

A sociological theory suggesting that modernization leads to social isolation, weakening the social ties and community consciousness that previously bound people together.

William Kornhauser

A sociologist known for his work on mass society theory, focusing on the effects of mass media and urbanization on social cohesion and individual behavior.

Émile Durkheim

Émile Durkheim was a French sociologist, social psychologist, and philosopher who is considered one of the founding fathers of sociology, known for his work on social cohesion and the role of religion in society.