As a Result of the Fed's Actions During the 2008

question 296

Multiple Choice

As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,

• A) the M2 money multiplier fell from 9 to 5.
• B) the M2 money multiplier more than doubled.
• C) the monetary base decreased by 50 percent.
• D) the ratio of currency to M2 deposits more than doubled.
• E) the reserve requirement ratio increased.

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Definitions:

Occasional Stress

Stress experienced at irregular intervals or only under particular circumstances.

Normal Reaction

A typical or expected response to a specific stimulus or situation based on common experience.

College Student

An individual enrolled in an institution of higher education to pursue a degree or certification.

Junk Food

Food items that are high in calories but low in nutritional value, often containing high levels of sugar, salt, and fat.