As a Result of the Fed's Actions During the 2008

question 80

Multiple Choice

As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,

• A)the M2 money multiplier has fallen from about 9 to about 4.
• B)the M2 money multiplier more than doubled.
• C)the monetary base decreased by 50 percent.
• D)the ratio of currency to M2 deposits more than doubled.
• E)the reserve requirement ratio increased.

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Definitions:

Robinson-Patman Act

An anti-discrimination law aimed at protecting small businesses from unfair competition practices by larger companies, particularly in the context of price differentiation.

Functional Discounts

Price reductions given to intermediaries in the distribution chain for performing certain functions like storage, distribution, or sales efforts.

Price Discrimination

The practice of charging different prices to different customers for the same product or service, typically without a difference in cost.

Price Discrimination

The practice of selling the same product to different buyers at different prices, often based on market power.