Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?
a. The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession.
b. The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession.
c. The Fed introduced several new procedures for the conduct of monetary policy and substantially increased bank reserves as the recession worsened.
d. The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.
C
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The Clinton administration inherited a budget deficit from its predecessor. President Clinton instituted major tax increases that
A) reduced the budget deficit but increased the federal debt. B) reduced the size of the deficit but could not eliminate it. C) increased the budget deficit during his entire term. D) brought the budget into balance and eventually into a surplus.
Compare and contrast production efficiency and allocative efficiency
What will be an ideal response?