1. A major policy mistake made by the U.S. government during the early part of the Great Depression was:

1. reducing taxes and raising spending
2. requiring all stocks to be purchased on margin
3. using tariffs for protectionism
4. not permitting troubled banks to fail

2.An inverted yield curve is a sign that:

1. the economy may go into recession in upcoming months
2. the Fed's short-run monetary policy is working
3. the federal government is running a budget deficit
4. the FOMC has suspended use of the Taylor Rule