In Response to a Severe Recession, the Fed More Than

question 132

Multiple Choice

In response to a severe recession, the Fed more than doubled the monetary base and pushed short-term interest rates to near zero during 2009-2010.  What happened in 2011?

• A) The inflation rate soared to double-digit levels.
• B) Aggregate demand increased and the economy recovered rapidly.
• C) The large budget deficit of the earlier years was transformed into a budget surplus.
• D) The high rate of unemployment continued.

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Definitions:

Dermis

The dermis is the thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and blood vessels.

Eccrine Sweat Glands

Small sweat glands distributed over much of the body's surface, involved in thermoregulation by secreting sweat to cool the body.

Apocrine Sweat Glands

Specialized sweat glands mainly found in the underarm and genital areas, that secrete a milky fluid and are involved in scent release.

Life Stage

A period of development characterized by distinct physical or psychological features typical of an individual or species.