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:

Sociologists

Social scientists who study the development, structure, and functioning of human society, including social behaviors, cultures, and institutions.

Personal Space

The physical area surrounding individuals that they consider psychologically theirs, infringement of which can cause discomfort or distress.

Inborn

Traits, characteristics, or abilities present in an individual from birth, not acquired or developed through experience.

Culture

The entire way of life of a group of people (including both material and symbolic elements) that acts as a lens through which one views the world and that is passed from one generation to the next.