When the Financial Crisis Started in August 2007,inflation Was Rising

question 7

Multiple Choice

When the financial crisis started in August 2007,inflation was rising and the Fed began an aggressive easing lowering of the federal funds rate,which indicated that

• A)there was an upward movement along the monetary policy curve.
• B)there was a downward movement along the monetary policy curve.
• C)the monetary policy curve shifted upward.
• D)the monetary policy curve shifted downward.

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Definitions:

Apparent Authority

An agent’s ability to affect the principal’s legal relations. Consent must be communicated to the third party.

Restatement (Third)

The third update to a set of model civil and criminal statutes designed to clarify, modernize, and otherwise improve American law.

Renunciation

Occurs when either party manifests to the other that he does not wish the agency to continue. This is done by the agent.

Revocation

The act of withdrawing, cancelling, or annulling a legal right, license, or agreement formally and officially.