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During the Recession of 2007-09 in the United States

Question 49

Multiple Choice

During the recession of 2007-09 in the United States,


A) the monetary base more than doubled but M-2 did not, as banks were reluctant to fund loans
B) short-term interest rates fell close to zero percent, so the Fed felt compelled to buy large quantities of financial assets to reduce long-term interest rates
C) a strong fiscal stimulus package intended to stimulate aggregate demand was implemented
D) all of the above
E) only A and C

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