Between September 2007 and March 2008 There Was a Substantial

question 151

Multiple Choice

Between September 2007 and March 2008 there was a substantial reduction in the demand for housing.What action did the Fed take in response to the reduction in the demand for housing?

• A)The Federal Reserve decreased the required reserve rate.
• B)The Fed conducted open market sales of Treasury securities.
• C)The Federal Reserve cut the federal funds rate seven times.
• D)The Federal Reserve raised the discount rate by 3 percentage points.

---

Definitions:

Altruistically

Refers to acting out of a selfless concern for the well-being of others, without expecting any reward.

Stanley Milgram

A psychologist known for his research on obedience, demonstrating how people are willing to follow orders from an authority figure even when it involves harming others.

Obedience Study

A research experiment that investigates the extent to which individuals comply with orders from an authority figure, famously exemplified by Stanley Milgram's experiments.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.