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

question 117

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 substantially increased bank reserves 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:

Avoidant Attachment Pattern

A style of attachment in which children do not seek proximity to the mother; after the mother has left, they seem to avoid her when she returns.

Secure Attachment Pattern

A style of attachment in which children use the mother as a kind of home base and are at ease when she is present; when she leaves, they become upset.

Disorganized-Disoriented

A term often used in reference to attachment styles, describing individuals who exhibit inconsistent and erratic behaviors and emotions towards caregivers.

Ambivalent

Having mixed feelings or contradictory ideas about something or someone.