Which of the following was not a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007–2009?
A. The large budget deficit constrained fiscal policy.
B. The inflated price of Treasury bills made them too expensive to purchase in open market operations.
C. Only the Federal Reserve acting as the central bank can serve as the lender of last resort.
D. The Fed was able to act more quickly than Congress.
Answer: B
You might also like to view...
Differences in earnings between racial groups is due in part from differences in:
A. ability to achieve. B. educational attainment. C. geographical location. D. None of these is true.
Sellers of a product will bear the larger part of the tax burden, and buyers will bear a smaller part of the tax burden, when the
a. tax is placed on the sellers of the product. b. tax is placed on the buyers of the product. c. supply of the product is more elastic than the demand for the product. d. demand for the product is more elastic than the supply of the product.
A rising standard of living will:
A. necessarily reduce the population by reducing the birthrate. B. increase the birthrate. C. reduce the birthrate, but population may continue to grow if the death rate falls more quickly. D. reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children.
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
The manufacturer of the new drug would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in B. decrease C. experience an uncertain change in D. increase