Two Actions by the Fed During Alan Greenspan's Term as Chairman

question 114

Multiple Choice

Two actions by the Fed during Alan Greenspan's term as chairman have been identified as possibly contributing to the financial crisis in 2008.Which of the following was one of those actions?

• A)decreasing the money supply to fight the possibility of disinflation
• B)the decision to keep the federal funds rate at 1 percent from June 2003 to June 2004
• C)working in concert with the European Central Bank to stabilize the dollar / euro exchange rate
• D)financing the first Gulf War by printing money and generating rapid inflation

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Definitions:

American Labor Movement

The historical and ongoing efforts to protect and advance the rights of workers in the United States, often through union activism and legislative change.

Welfare Capitalism

An approach where businesses provide social welfare services to their employees, aiming to improve living conditions and reduce labor unrest.

Prevent Unionization

Strategies employed by employers to discourage or prevent the formation or successful operation of labor unions within their organization.

Mass Production

A manufacturing process that produces large quantities of standardized products, utilizing assembly lines and automation to achieve efficiency and uniformity.