Question: Recent financial crises have resulted from a. Sharp declines in asset prices b. Affected financial institutions having a mismatch between the maturity of their liabilities

Recent financial crises have resulted from

a. Sharp declines in asset prices

b. Affected financial institutions having a mismatch between the maturity of their liabilities and the maturity of their assets

c. Uncertainty about the financial condition and liquidity of important financial institutions

Because of the financial crisis

a. Aggregate demand plunged

b. The level of the federal funds rate required to restore output to potential and to stabilize inflation was negative

c. The Fed augmented a federal funds rate of zero with forward guidance and large-scale asset purchases

d. All of the above

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