During the Turmoil in the Market for Subprime Mortgages in 2007

question 194

Multiple Choice

During the turmoil in the market for subprime mortgages in 2007 and 2008,the Fed increased the volume of discount loans.The goal of the Fed was to

• A)reduce the rate of inflation.
• B)stimulate economic growth.
• C)reduce unemployment.
• D)reassure financial markets and promote financial stability.
• E)reduce the current account deficit.