In 2008, when the U.S. financial system collapsed, it led to:
A) very high inflation, and the Federal Reserve followed a strict contractionary monetary policy to bring prices down.
B) the Federal Reserve lowering the interest rate, and the economy revived as businesses and individuals secured low-interest loans.
C) a severe cycle of deleveraging and a credit crunch for the economy as a whole.
D) the Federal Reserve increasing the interest rate, which further destabilized the economy.
Correct Answer:
Verified
Q260: The Federal Reserve:
A)was established by Franklin Delano
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Q262: A firm uses financial leverage when it:
A)replaces
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Q266: As a result of the S&L crisis,
Q267: High interest rates in the 1970s:
A)helped S&Ls
Q268: In the financial crisis of 2008, which
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A)investment bank.
B)hedge fund.
C)government
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A)savings
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