Since the fiNancial Crisis of 2008, the Main Tool of Expansionary

question 128

Multiple Choice

Since the financial crisis of 2008, the main tool of expansionary monetary policy used by the Fed has been

• A) changes in reserve requirements.
• B) quantitative easing.
• C) tariffs and fees.
• D) too-big-to-fail.

---

Definitions:

Francs

A currency unit formerly used in France and some other countries, and still used in some territories.

Consumption

The process of using goods and services to satisfy wants or needs.

Revealed Preferences

An economic theory that infers preferences of consumers by observing choices made under budget constraints, instead of through direct inquiry of preferences.

Francs

Currency units formerly used in France and currently used in some countries of the Francophone world, including Switzerland and some African countries.