Which of the following policies were used in response to the latest financial cr

Question

Which of the following policies were used in response to the latest financial crisis? Of those used, which are examples of monetary policy? Of fiscal policy?

a. Aggressive controlling of inflation by raising interest rates.

     This (Click to select)policy was not usedis an example of monetary policyis an example of fiscal policy.

b. Providing short-term financing directly to small businesses to jump-start investment.

     This (Click to select)policy was not usedis an example of monetary policyis an example of fiscal policy.

c. Bailing out banks that have large amounts of risky mortgage-backed securities.

     This (Click to select)is an example of monetary policypolicy was not usedis an example of fiscal policy.

d. Purchasing long-term bonds to increase the money supply.

     This (Click to select)is an example of fiscal policyis an example of monetary policypolicy was not used.

e. Raising the Social Security eligibility age by five years to encourage people to work.

     This (Click to select)is an example of monetary policypolicy was not usedis an example of fiscal policy.

Explanation / Answer

a. interest rates-monetary policy

b. loans to small businesses: fiscal policy

c. Bailing out banks is a fiscal policy

d. Increase money supply: monetary policy

e. Social security age: fiscal policy.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.