Which of the following responded to an economic downturn with a shift to a more expansionary monetary policy?

Question

Quizplus · Accepted Answer

The U.S. responded to the recession of 2008-2009 with a shift to a more expansionary monetary policy, including lowering interest rates and implementing quantitative easing. Japan in the 1990s struggled with a prolonged period of deflation and opted for a more restrictive monetary policy, while the U.S. during the Great Depression initially followed a contractionary policy that worsened the economic situation. Therefore, A and B are incorrect answers.

Which of the Following Responded to an Economic Downturn with a Shift