The Fed's low short-term interest rate policy of 2002 to 2004 encouraged decision makers to
A) make large down payments when purchasing housing.
B) borrow more and increase their purchases of housing.
C) borrow less and reduce their purchases of housing.
D) purchase housing only if it could be financed with a 30-year, fixed interest-rate mortgage.
B) borrow more and increase their purchases of housing.
You might also like to view...
What is voluntary exchange?
What will be an ideal response?
How did the use of the euro limit the use of monetary policy by European nations severely affected by the Financial Crisis of 2007-2009?
What will be an ideal response?
Protecting intellectual property rights:
A. can reduce total surplus for society. B. never increases total surplus for society. C. never affects total surplus for society. D. always increases total surplus for society.
Reserves of member banks appear on the Fed's balance sheet as liabilities
a. True b. False Indicate whether the statement is true or false