Economic Policy: Influential Theories

Question 1

Use the drop-down menus to complete each sentence. was an economist who led a new school of classical economics. The concept of laissez faire refers to government intervention in the economy. The theory that governments should assist in economic crises through fiscal and monetary policy can be credited to .

Revolt · Accepted Answer

Smith; Selection 1: Smith; Selection 2: little; Selection 3: Keynes

Question 2

Question 2

Revolt · Accepted Answer

little

Question 3

Question 3

Revolt · Accepted Answer

Keynes

Question 4

According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply.The money supply became less liquid.Consumer spending increased dramatically.Lending and credit stopped.Banks were too easily able to fulfill consumer demands for loans.It was difficult for banks to receive the loans needed to have cash required to function.

Revolt · Accepted Answer

The money supply became less liquid.; Lending and credit stopped.; It was difficult for banks to receive the loans needed to have cash required to function.

Question 5

Identify the actions taken by the Fed to assist banks during the financial crisis of 2008. Check all that apply.

Revolt · Accepted Answer

The Fed bought securities to increase the money supply.; The Fed lowered interest rates, hoping to increase available credit.; The Fed carried out open market operations to stimulate growth.

Question 6

Use the drop-down menus to complete each sentence. A notable action taken by the Fed during the financial crisis of 2008 was carrying out open market operations, which was intended to lower the . The actions taken by the Fed have immediate positive results, despite the fact that the Federal Funds Rate reached nearly .

Revolt · Accepted Answer

Selection 1: Federal Funds Rate; Selection 2: did not; Selection 3: 0%

Economic Policy: Influential Theories Answers

More from this Course

TRY EDGENUITY HACKS