In Late 2007, the Fed Began a Series of Cuts

question 139

Multiple Choice

In late 2007, the Fed began a series of cuts in the federal funds rate.Because the core inflation rate was about two percent, the most likely reason for these interest rate cuts was

• A) to raise the price of the dollar in the foreign exchange market.
• B) to avoid a recession.
• C) to encourage households to save more money.
• D) to reduce the natural unemployment rate.
• E) to increase the real interest rate.

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Definitions:

Low pH

A condition or measurement indicating that a solution is acidic, with a pH value less than 7.

Vallate Papillae

Big, rounded papillae found at the tongue's rear, playing a role in experiencing flavors.

Otolithic Membrane

A structure in the inner ear that plays a key role in sensing gravity and linear acceleration.

High pH

A condition or environment that has a pH value greater than 7, indicating it is more alkaline or basic.