During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to
A) reduce unemployment.
B) stimulate economic growth.
C) reduce the rate of inflation.
D) reassure financial markets and promote financial stability.
E) reduce the current account deficit.
D
You might also like to view...
Tacos and pizza are substitutes. If a 2 percent change in the price of a taco leads to a 4 percent change in the demand for pizza, the cross elasticity of demand equals
A) -1/2. B) 1/2. C) 2. D) -2. E) 4.
A group of producers that agree to coordinate their production is called a
A) cartel. B) monopoly. C) free market competition. D) vertical merger.
A tax is regressive if it collects a:
a. larger amount as income rises. b. constant amount as income rises. c. smaller fraction of income as income falls. d. smaller fraction of income as income rises.
According to the classical model, there is no need for government intervention in the economy. if the economy is left alone, full employment output will eventually occur
a. True b. False