In the Mid 1980s, Two Developments of Note Occurred

question 15

Multiple Choice

In the mid 1980s, two developments of note occurred. The first was the need for the Fed, which it publicly acknowledged, to become concerned with the level and stability of the U.S. dollar's foreign currency exchange rate. What was the second development?

• A) It was the shocking fall in equity prices around the world in October 1987.
• B) It was the shocking increase in equity prices around the world after the fall in prices in October 1987.
• C) It was the realization that nothing could be done to curb the instability in the financial markets.
• D) It was the realization that nothing could be done to provide necessary liquidity.

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Double-Blind Study

A research method in which both the subjects and the researchers are unaware of which group (test or control) the subjects belong to, to prevent bias.

Experimental

Pertaining to a methodical procedure carried out with the goal of verifying, falsifying, or establishing the validity of a hypothesis.

Control Groups

Groups in an experiment that do not receive the treatment being tested, enabling comparison to groups that do receive the treatment to assess its effect.