The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is not one of the ways the Fed responded?
A) The Fed made investment banks eligible for discount loans.
B) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves.
C) The Fed helped JP Morgan to acquire Bear Stearns, a nearly bankrupt investment bank.
D) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities.
B
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When comparing the slopes of the aggregate-demand and aggregate-supply curves to the slopes of demand and supply curves for specific goods and services, the explanations are
a) the same for all the curves. b) quite different for the aggregate curves from the specific market curves. c) the same for the demand curves but not the supply curves. d) the same for the supply curves but not the demand curves.
Which of the following is an example of monitoring and enforcement costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee