The Federal Reserve's response to the Great Recession was an attempt to
A) increase aggregate demand.
B) decrease aggregate demand.
C) decrease the price level.
D) increase short-run aggregate supply.
E) decrease short-run aggregate supply.

Question

Quizplus · Accepted Answer

The Federal Reserve's response to the Great Recession involved implementing expansionary monetary policy, including lowering interest rates and engaging in large-scale asset purchases, in an attempt to increase aggregate demand and stimulate economic growth.

The Federal Reserve's Response to the Great Recession Was an Attempt