Which of the Following Measures Did the Fed Take During

question 132

Multiple Choice

Which of the following measures did the Fed take during the financial crisis of 2008?

• A)The Fed lowered the discount rate and paid interest on reserves held at the Fed.
• B)The Fed increased the reserve requirement ratio.
• C)The Fed sold all government securities.
• D)The Fed decreased its spending.
• E)The Fed increased the discount rate.

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Definitions:

Significant Contribution

An important or valuable addition or impact that significantly affects an outcome or process.

Stepwise Regression Technique

A method of fitting a regression model by adding or removing predictors based on a specified criterion.

Backward Selection

A stepwise regression method that starts with a full model and iteratively removes the least significant variables to optimize model performance.

Independent Variable

A variable in an experiment or mathematical model that is manipulated or changed to observe its effect on the dependent variable.