Between September 2007 and March 2008 There Was a Substantial

question 151

Multiple Choice

Between September 2007 and March 2008 there was a substantial reduction in the demand for housing.What action did the Fed take in response to the reduction in the demand for housing?

• A)The Federal Reserve decreased the required reserve rate.
• B)The Fed conducted open market sales of Treasury securities.
• C)The Federal Reserve cut the federal funds rate seven times.
• D)The Federal Reserve raised the discount rate by 3 percentage points.

---

Definitions:

Public Opinion

The aggregate of individual attitudes or beliefs held by the adult population concerning social, economic, and political issues or policies.

Mass Consumption

The widespread purchasing and use of goods and services by a large portion of the population.

U.S. Marines

A branch of the United States Armed Forces responsible for providing power projection and amphibious warfare capabilities.

Dictator

A ruler with absolute power over a country, typically one who has obtained control by force rather than by democratic means.