The Great Moderation Consensus Agreement That a Decrease in the Interest

question 304

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 central bank 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) the federal government increased taxes.

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Definitions:

Effort-to-performance Expectancy

The belief that one's effort will lead to successful performance in tasks, often associated with motivational theories.

Job Status Rewards

This refers to benefits and recognitions provided to employees based on their position or level within an organization.

Organizational Politics

Refers to activities within an organization that are aimed at improving an individual's or group's power and status, often at the expense of others.

Employee Benefits

Forms of non-wage compensation provided to employees in addition to their normal wages or salaries, such as health insurance, paid vacation, and retirement plans.