During the recession of 2007-09, the U.S.Fed
A)lowered the federal funds rate to almost zero percent
B)bought large numbers of securities that were backed by private mortgages
C)took actions that increased the monetary base to more than double its original size
D)made loans to targeted sectors of the financial market
E)all of the above

Question

Quizplus · Accepted Answer

During the recession of 2007-09, the U.S. Fed implemented a range of measures to stabilize the economy and financial markets. Specifically, they lowered the federal funds rate to almost zero percent, bought large numbers of securities that were backed by private mortgages, took actions that increased the monetary base to more than double its original size, and made loans to targeted sectors of the financial market. Therefore, all of the choices A to D are correct.

During the Recession of 2007-09, the U.S.Fed