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In Response to the Great Recession of 2007-2009, the Federal

Question 44

Multiple Choice

In response to the Great Recession of 2007-2009, the Federal Reserve (Fed) attempted to grow the U.S.economy with a policy called quantitative easing, which would pump more dollars into the economy and cause interest rates to fall.Which of the following was NOT a criticism of the policy?


A) The policy could lead to a depreciation in the dollar's exchange value.
B) The policy could improve American competitiveness at other nations' expense.
C) The rest of the world's producers could see their exports begin to fall.
D) Americans goods would become more expensive for foreign consumers.

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