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Recall Application 2, "Would a Policy Rule Have Prevented the Housing

Question 20

Multiple Choice

Recall Application 2, "Would a Policy Rule Have Prevented the Housing Boom? ," to answer the following questions:
-According to the application, which of the following did John Taylor identify as the cause of the housing boom from 2001- 2004?


A) the Treasury's bailout of banks
B) the Fed's "easy money" policy
C) the Fed's "tight money" policy
D) Congress' tax cuts

Correct Answer:

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