Which of the Following Is False

question 34

Multiple Choice

Which of the following is false?

• A)The Emergency Economic Stabilization (EESA) of 2008 was passed in response to the financial crisis of 2007-2008.
• B)The Emergency Economic Stabilization of 2008 authorized the U.S. Treasury to purchase up to $700 billion of "toxic" assets that were clogging the financial system.
• C)The Emergency Economic Stabilization of 2008 authorized $700 billion to be used to bail out homeowners whose homes were in foreclosure.
• D)Shortly after its passage, the TARP program authorized by the EESA was revised and the initial funds were used to purchase preferred stock in troubled banks rather than to purchase "toxic" assets.

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Definitions:

Consumption Increase

A rise in the amount of goods and services consumed by households or the economy over a period.

Price Increase

A rise in the cost of goods or services, affecting demand, supply, and inflation.

Optimal Consumption

The mix of goods and services that maximizes a consumer's utility given their budget constraints.

Initial Endowment

The initial quantity of goods, services, or resources an individual, institution, or country possesses at the start of an economic analysis.