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.

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Definitions:

Behavioral Neuroscience

A branch of neuroscience that focuses on the biological bases of behavior, examining how brain processes and physiological mechanisms determine behavior.

Animal Welfare Act

A federal law in the United States designed to ensure that animals used for research, exhibition, transport, and by dealers are treated humanely.

Mammals

Warm-blooded vertebrate animals with hair or fur, females of which secrete milk for the nourishment of the young.

Developed Nations

Countries with a high level of economic development, characterized by high income per capita, advanced technology, and a well-developed infrastructure.