Which of the Following Was True of the Actions of the Federal

question 79

Multiple Choice

Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?

• A) The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession.
• B) The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession.
• C) The Fed introduced several new procedures for the conduct of monetary policy and it increased the monetary base rapidly as the recession worsened.
• D) The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.

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Definitions:

Ethics

The branch of philosophy concerned with the intent, means, and consequences of moral behavior; derived from the Greek word ethos, referring to a person’s fundamental orientation toward life or inner character.

Human Concern

A focus on the needs, well-being, and rights of human beings, often driving social initiatives and humanitarian efforts.

U.S. Army

The land warfare service branch of the United States Armed Forces, responsible for land-based military operations.

Instrumental Values

Values or ethical standards that are viewed as a means to an end, guiding how we achieve our goals.