Which of the Following Actions Was NOT Taken in Response

question 209

Multiple Choice

Which of the following actions was NOT taken in response to the financial crisis?

• A) a bailout of Lehman Brothers
• B) purchases of over $1 trillion in mortgage-backed securities by the Fed
• C) an increase in the FDIC's guarantee on deposits from $100,000 to $250,000 per account
• D) over $100 billion in loans by the Fed to AIG

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Definitions:

Normal Goods

Goods for which demand increases as consumers' income increases, holding all other factors constant.

Cross-Price Elasticity

A measure of how the quantity demanded of one good changes in response to a price change of another good.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Good Changes

Positive alterations in circumstances or conditions, often implying improvements or advancements.