Toward the end of 2008, the U.S. economy was characterized by all of the following except
A) credit tightening by banks.
B) rising inflation.
C) falling real GDP.
D) an unprecedented federal funds rate below 1%.

Question

Quizplus · Accepted Answer

Rising inflation was not a characteristic of the U.S. economy toward the end of 2008. In fact, inflation was low due to the economic downturn and falling prices in some sectors, such as housing. The other three choices were accurate: banks tightened credit, real GDP fell, and the federal funds rate reached historically low levels.

Toward the End of 2008, the U