As the Fed Maintained Interest Rates at near Zero During

question 36

Multiple Choice

As the Fed maintained interest rates at near zero during 2008-2012,

• A) the economy recovered and the unemployment rate fell to normal levels.
• B) households and businesses held larger money balances and the velocity of money fell substantially.
• C) stock prices declined during 2010-2012, causing the economy to remain weak.
• D) the earnings senior citizens derived from saving deposits and other forms of savings rose substantially, leading to higher incomes and a strong increase in aggregate demand.

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Definitions:

Transamination

A biochemical process that transfers the amino group from one amino acid to a keto acid, converting the latter into a new amino acid.

Amino Acid

Organic compounds that combine to form proteins, serving as the building blocks for protein synthesis in the body.

Glutamic Acid

An amino acid that acts as an important neurotransmitter in the central nervous system.

Aspartic Acid

An amino acid that plays a vital role in the biosynthesis of other amino acids and in the urea and citric acid cycles.