The Federal Reserve cut the federal funds rate seven times between September 2007 and March 2008. What event led the Fed to make these reductions in the federal funds rate?
A) The chairman of the Federal Reserve System persuaded members of the Federal Open Market Committee to lower interest rates in order to reduce the price of oil in international markets.
B) It was in response to reductions in the discount rate, which was also lowered seven times over the same time period.
C) Several large investment banks failed during this time period.
D) During this period there was a substantial reduction in the demand for housing.
D
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What will be an ideal response?
The following Phillips curve of would be consistent with the _____ model(s)
a. Keynesian. b. monetarist. c. monetarist and classical. d. classical. e. None of the above