In what way may the Fed have contributed to the housing bubble?

A. By inflating housing prices in the early 2000s
B. By investing heavily in mortgage-backed securities
C. By making credit cheaper with a low Federal funds rate
D. By causing unemployment with low money supply growth

Ans: C. By making credit cheaper with a low Federal funds rate

Economics

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Two social institutions that are essential for trade to be organized are ________

A) property rights and laws B) markets and banks C) businesses and banks D) markets and property rights

Economics

If the Consumer Price Index was 165 in one year and 175 in the next year, then the rate of inflation from one year to the next was approximately:

a. 4.3 percent b. 5.7 percent c. 7.5 percent d. 6.1 percent

Economics