Which Government Agencies Designed a $700-Billion Bailout Package and Convinced

question 75

Multiple Choice

Which government agencies designed a $700-billion bailout package and convinced Congress that a rapid response was needed to avert a worldwide depression in 2008?

• A)the Treasury Department and the Federal Reserve System
• B)the Department of Commerce and the Office of Management and Budget
• C)the Office of Management and Budget and the Council of Economic Advisers
• D)the Department of Commerce and the Council of Economic Advisers

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Definitions:

Consumer Surplus

It is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Market Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Producer Surplus

The difference between the amount a producer is willing to accept for a product versus what they actually receive.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.