The Fed Attempted to Deal with the Sluggish Aggregate Demand

question 5

Multiple Choice

The Fed attempted to deal with the sluggish aggregate demand that followed the housing market crash and subsequent financial crisis through:

• A)contractionary monetary policy.
• B)expansionary fiscal policy.
• C)expansionary monetary policy.
• D)contractionary fiscal policy.

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Definitions:

Myopia

A visual condition, also known as nearsightedness, where close objects appear clearly, but distant objects are blurry.

Choroiditis

Inflammation of the choroid, a vascular layer of the eye, leading to vision problems.

Cycloplegia

Paralysis of the ciliary muscle of the eye, resulting in a loss of accommodation and inability to focus on close objects.

Keratitis

Inflammation of the cornea, the clear outer layer at the front of the eye, potentially caused by infection or injury.