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During the Financial Crisis of 2008, the Fed

Question 39

Multiple Choice

During the financial crisis of 2008, the Fed


A) attempted to stabilize the economy by selling over $1 trillion in securities.
B) engaged in massive purchases of securities, adding over $1 trillion to its balance sheet.
C) stopped its purchase of mortgage-backed securities to reduce its balance sheet.
D) was careful to balance its purchase and sale of securities so as not to drastically change its balance sheet.

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