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

question 250

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 during 1998 to help save the hedge fund Long Term Capital Management
• C)working in concert with the European Central Bank to stabilize the dollar / euro exchange rate
• D)financing the war in Afghanistan by printing money and generating rapid inflation

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Definitions:

Dopamine Levels

The concentration of dopamine, a neurotransmitter involved in movement, motivation, and the pleasure-reward system, within the human body.

Substance Addiction

A chronic condition characterized by compulsive drug seeking and use, despite harmful consequences.

Physical Abuse

The intentional use of physical force that causes injury, physical pain, or impairment to another person.

Eating Disorders

Mental health conditions characterized by unhealthy eating habits that negatively affect a person's physical and psychological health.