6. In response to the financial crisis of 2008, the Federal Reserve used to stimulate mortgage lending. a. capital requirements b. forward guidance c. negative interest rates d. quantitative easing 7. When banks lend out more of their reserves (as opposed to holding them as reserves), the effect of open market operations on the money supply a. does not change. b. strengthens. c. weakens. 8. The IS curve represents all equilibrium points in the market for while the LM curve represents all equilibrium points in the market for a. aggregate demand; aggregate supply b. aggregate supply; aggregate demand C. goods and services; money d. money; goods and services According to the theory of liquidity preference, the opportunity cost of holding money is a. the inflation rate. b. the interest rate. c. the level of income. d. the price level. 10. According to the money hypothesis of the Great Depression, should have been used to prevent a leftward shift in the fiscal policy; IS curve b . fiscal policy; LM curve c. monetary policy; IS curve d. monetary policy; LM curve