Which of the following statements is true with regard to the Fed's response to the economic crisis of 2008?
A)Although the Fed lowered its interest rates to nearly zero, there are other actions it can take to improve the economy.
B)Because the Fed lowered its interest rates to nearly zero, there are no other actions it can take to improve the economy.
C)Since the Fed did not lower its interest rates to near zero, there are still other actions it can take to improve the economy.
D)none of the above

Question

Which of the following statements is true with regard to the Fed's response to the economic crisis of 2008?
A)​Although the Fed lowered its interest rates to nearly zero, there are other actions it can take to improve the economy.
B)​Because the Fed lowered its interest rates to nearly zero, there are no other actions it can take to improve the economy.
C)​Since the Fed did not lower its interest rates to near zero, there are still other actions it can take to improve the economy.
D)​none of the above

Quizplus · Accepted Answer

The Fed's response to the economic crisis of 2008 included lowering interest rates to nearly zero, but there are other actions it can take to improve the economy, such as implementing quantitative easing and adjusting reserve requirements for banks. Choice B is incorrect because the Fed can take other actions besides interest rate adjustments. Choice C is also incorrect because the Fed did lower interest rates to nearly zero.

Which of the Following Statements Is True with Regard to the Fed's