Economic Policy: Influential Theories

Question 1

Use the drop-down menus to complete each sentence.

Revolt · Accepted Answer

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 .: Federal Funds Rate; The actions taken by the Fed have immediate positive results, despite the fact that the Federal Funds Rate reached nearly .: did not; The actions taken by the Fed have immediate positive results, despite the fact that the Federal Funds Rate reached nearly .: 0%

Question 2

Use the drop-down menus to complete each sentence.

Revolt · Accepted Answer

✔ Smith; was an economist who led a new school of classical economics.: Smith; The concept of laissez faire refers to government intervention in the economy.: little; The theory that governments should assist in economic crises through fiscal and monetary policy can be credited to .: Keynes

Question 3

✔ littlelargeunlimited

Revolt · Accepted Answer

✔ little

Question 4

Smith✔ KeynesHayek

Revolt · Accepted Answer

✔ Keynes

Question 5

Use the drop-down menus to complete each sentence.

Revolt · Accepted Answer

✔ aggregates; According to the theories of Friedrich August von Hayek, the economy may be too complicated to think in terms of .: aggregates; Hayek believed that was dangerous and could lead to severe inflation.: expansionary policy; Milton Friedman supported changes to policy to influence economic growth.: monetary

Question 6

contractionary policy✔ expansionary policy

Revolt · Accepted Answer

✔ expansionary policy

Question 7

taxationspending✔ monetary

Revolt · Accepted Answer

✔ monetary

Question 8

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 9

Identify the actions taken by the Fed to assist banks during the financial crisis of 2008. Check all that apply.The Fed implemented new fiscal policy measures to encourage consumer spending.The Fed placed a cap on the cash that individuals could receive from banks at one time.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.

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 10

Use the drop-down menus to complete each sentence.

Revolt · Accepted Answer

✔ Federal Funds Rate; 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 .: Federal Funds Rate; The actions taken by the Fed have immediate positive results, despite the fact that the Federal Funds Rate reached nearly .: did not; The actions taken by the Fed have immediate positive results, despite the fact that the Federal Funds Rate reached nearly .: 0%

Economic Policy: Influential Theories Answers

More from this Course

TRY EDGENUITY HACKS