Because of the Recession of 2007-09, the Fed provided a(n)_?_ policy to provide liquidity to the ?_ markets. A) expansionary...business C) expansionary..financial B) contractionary...bond D) contractionary...foreign exchange The traditional tools the Fed used in the Great Recession were to ? the Reserve Requirement,?_the Discount Rate and? T-Bills. A) lower. raise.sell B) lower... lowe..buy C) raise.lower...buy D) raise.raise.sell A non-traditional tool used by the Fed in the Great Recession was paying A) Interest on Required Reserves B) Interest on Excess Reserves C) Interest on Fed Funds D) interest on the Discount Rate

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter13: Monetary Policy: Conventional And Unconventional
Section: Chapter Questions
Problem 7DQ
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Because of the Recession of 2007-09, the Fed provided a(n)_?_policy to provide liquidity
to the ?_markets.
A) expansionary..business C) expansionary..financial
B) contractionary..bond D) contractionary...foreign exchange
The traditional tools the Fed used in the Great Recession were to ?the Reserve
Requirement,?_the Discount Rate and? T-Bills.
A) lower... raise...sell
B) lower... lower...buy
C) raise..lower...buy
D) raise..raise.sell
DA non-traditional tool used by the Fed in the Great Recession was paying
A) Interest on Required Reserves
B) Interest on Excess Reserves
C) Interest on Fed Funds
D) interest on the Discount Rate
Transcribed Image Text:Because of the Recession of 2007-09, the Fed provided a(n)_?_policy to provide liquidity to the ?_markets. A) expansionary..business C) expansionary..financial B) contractionary..bond D) contractionary...foreign exchange The traditional tools the Fed used in the Great Recession were to ?the Reserve Requirement,?_the Discount Rate and? T-Bills. A) lower... raise...sell B) lower... lower...buy C) raise..lower...buy D) raise..raise.sell DA non-traditional tool used by the Fed in the Great Recession was paying A) Interest on Required Reserves B) Interest on Excess Reserves C) Interest on Fed Funds D) interest on the Discount Rate
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