In September 2007, Reversing Its Course, the Federal Reserve Began

question 9

Multiple Choice

In September 2007, reversing its course, the Federal Reserve began a series of:

• A) interest rate increases, reversing its previous policy of lowering interest rates to fight the financial crisis.
• B) interest rate increases to combat inflation.
• C) cuts in the reserve requirements, reversing its previous policy of increasing the reserve requirement, to stop bank failures.
• D) cuts in the federal funds target rate to lower the interest rate, reversing its previous policy of raising interest rates, to fight the financial crisis.

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