What are some examples of the unconventional monetary policy from the Federal Reserve in response to the 2007–2009 financial crisis? Why were opponents concerned about these measures?
What will be an ideal response?
The unconventional monetary policy used by the Fed included purchasing assets other than Treasury bills, lending massive amounts to banks and other financial institutions, and participating in rescue operations for troubled financial institutions. Critics accused the Fed of overstepping its legal authority, making what should be political decisions, putting taxpayer money at risk without congressional appropriations, and sowing the seeds for future inflation.
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Adhering to the principle of revenue neutrality _____
a. allows for the separation of efficiency and the overall level of taxation b. allows for the separation of equity and the overall level of progressivity c. allows for the separation of equity and government spending d. allows for the separation of efficiency and intergovernmental transfers
The Federal Reserve Banking Act of 1978
a. attempted to guarantee stability of the banking system b. was a reaction to the savings and loan crisis c. added full employment to the list of objectives for the Fed d. strengthened deposit insurance programs e. pledged the Fed to keep the inflation rate low
A head tax is
a. a tax in the form of a percentage of the value of the good taxed b. a fixed tax in the form of cents or dollars per unit of the good c. a sales tax applied to a foreign good d. any tax levied on a good e. the same as a poll tax
In the long run, profits for a monopolistic competitor will be:
A. the same as the profits for a monopolist. B. the same as the profits for a purely competitive firm. C. slightly less than the profits of a monopolist. D. slightly more than the profits of a purely competitive firm.