The Combined Efforts of the Fed and the Treasury in Response

question 122

Multiple Choice

The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash were:

• A) effective in restoring aggregate supply to its pre-crisis level, but still left the economy with sluggish aggregate demand.
• B) ineffective in restoring aggregate supply to its pre-crisis level, and output remained far below potential.
• C) effective in restoring aggregate supply to its pre-crisis level, but left the economy facing severely increasing inflation.
• D) ineffective in restoring aggregate supply to its pre-crisis level, but output increased due to increased consumer confidence boosting aggregate demand.

---

Definitions:

Lawyer Referral Service

A service, often operated by bar associations, that helps people find lawyers with the appropriate expertise for their legal issues.

Initial Consultation

The preliminary meeting between a professional, such as a lawyer or consultant, and a client to discuss the client's needs and determine the course of action.

Lawyer Referral

A service, typically provided by bar associations, that helps individuals find attorneys suited to their legal needs.

Lawyer-Client Relationship

The professional bond between a lawyer and their client, characterized by trust, confidentiality, and the obligation to provide competent legal representation.