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After the Stock Market Crash of 1987,the Financial Emergency of 1998,and

Question 66

Multiple Choice

After the stock market crash of 1987,the financial emergency of 1998,and September 11,2001,the Federal Reserve Bank pursued a policy of


A) tightening the money supply and raising interest rates sharply.
B) maintaining steady growth in the money stock to reassure business.
C) flooding the banking system with excess liquidity to ease the threat of personal and corporate bankruptcies.
D) temporary tax reductions on interest, dividends, and capital-gains income.
E) borrowing reserves from the International Monetary Fund.

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