Which of the Following Is False

question 33

Multiple Choice

Which of the following is false?

• A)The fed funds target rate was reduced dramatically from mid 2007 through December 2008 due to an economy in crisis.
• B)In early 2009, the Fed did not anticipate increasing rates anytime soon.
• C)In late 2008, the market for mortgage-backed securities dried up in response to the mortgage crisis.
• D)The Fed has acted too slowly in mitigating the financial crisis of 2007-2008.

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Definitions:

Hedonist Principle

A principle suggesting that people are motivated to engage in behaviors that produce pleasure or avoid pain.

Temporal Immediacy

The perception or importance of time in the evaluation of events, suggesting that actions or events that occur closer to the present time are considered more relevant or significant.

Decision Consequences

The outcomes or impacts that follow a decision, which can be foreseen or unforeseen, positive or negative.

Self-Serving Principles

Guidelines or beliefs that are primarily aimed at benefiting oneself, often at the expense of others.