Question

2) During the financial crises and recession of 2007-09, the Fed lowered the federal funds rate target to 0-0.25%. However, long-term interest rates, like mortgage rates, were still fairly high. One thing the Fed did to lower long-term rates was that the Fed : A) bought long-term bonds B) lowered the long-term interest rates by lowering the reverse repo rate C) lowered the long-term interest rates by lowering the discount rate D) sold long-term bonds

Name: 2 during the financial crises and recession of 2007 09 the fed lowered the federal funds rate target to 0 025 however long term interest rates like mortgage rates were still fairly high one 69849
Uploaded: 2022-06-02T17:03:25-08:00
Duration: 4 min 22 s
Channel: Jonathan Tapiwa
Description: 2 during the financial crises and recession of 2007 09 the fed lowered the federal funds rate target to 0 025 however long term interest rates like mortgage rates were still fairly high one 69849

          2) During the financial crises and recession of 2007-09, the Fed lowered the federal funds rate target to 0-0.25%. However, long-term interest rates, like mortgage rates, were still fairly high. One thing the Fed did to lower long-term rates was that the Fed :
A) bought long-term bonds
B) lowered the long-term interest rates by lowering the reverse repo rate
C) lowered the long-term interest rates by lowering the discount rate
D) sold long-term bonds

Added by Joshua R.

Principles of Economics

Gregory Mankiw 8th Edition

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06/02/2022

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2) During the financial crises and recession of 2007-09, the Fed lowered the federal funds rate target to 0-0.25%. However, long-term interest rates, like mortgage rates, were still fairly high. One thing the Fed did to lower long-term rates was that the Fed : A) bought long-term bonds B) lowered the long-term interest rates by lowering the reverse repo rate C) lowered the long-term interest rates by lowering the discount rate D) sold long-term bonds