The Fed took action to lower interest rates in late 2007 and 2008 due to
A)an unprecedented financial crisis that started in the housing market and spread to the broader economy.
B)escalating inflation.
C)a burgeoning government defidit.
D)None of the above; the Fed increased interest rates through 2008.

Question

Quizplus · Accepted Answer

The housing market crisis in 2007 and the subsequent financial crisis prompted the Federal Reserve to take action to lower interest rates in an effort to stimulate the economy and prevent further damage.

The Fed Took Action to Lower Interest Rates in Late