The Great Moderation Consensus Agreement That a Decrease in the Interest

question 280

Multiple Choice

The Great Moderation consensus agreement that a decrease in the interest rate was the best policy for fighting a recession was ineffective in the Great Recession because:

• A) the Fed bought government securities, but interest rates did not fall.
• B) interest rates were already close to zero.
• C) financial institutions were engaging in maturity transformation.
• D) Congress increased taxes.

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Definitions:

Personal Information

Data relating to an individual that can be used to identify, contact, or locate a single person.

Repressed Memories

Memories that have been unconsciously blocked due to being associated with a high level of stress or trauma.

Dissociative Amnesia

Loss of memory for important facts about a person’s own life and personal identity, usually including the awareness of this memory loss.

Somatization

the manifestation of psychological distress through physical symptoms, which may not have a medical explanation, often seen in somatic symptom disorder.