Which of the Following Was True of the Actions of the Federal

question 117

Multiple Choice

Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?

• A) The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession.
• B) The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession.
• C) The Fed introduced several new procedures for the conduct of monetary policy and substantially increased bank reserves as the recession worsened.
• D) The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.

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Definitions:

Operant Conditioning

A learning process by which the strength of a behavior is modified by reinforcement or punishment.

Voluntary Responses

Actions or reactions that are consciously controlled and chosen by an individual, as opposed to automatic or reflexive responses.

Automatic Responses

Reactions that occur without conscious thought, typically as a result of learned behaviors or innate reflexes.

Personality Development

Personality development involves the growth and changes in an individual's character, traits, and behaviors over time, influenced by both genetic factors and environmental experiences.