The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________.
A)to avoid the bankruptcy of the issuing firms
B)to manage expectations
C)to prevent such firms from being acquired by foreign companies
D)to stimulate spending by firms and households

Question

Quizplus · Accepted Answer

The key objective of the Fed's purchases of debt issued by private firms was to stimulate spending by firms and households. By purchasing these assets, the Fed aimed to increase the availability of credit and reduce borrowing costs, thereby encouraging firms and households to invest and spend more. This was part of the Fed's broader efforts to boost economic growth and recover from the financial crisis.

The Key Objective of Purchases by the Federal Reserve of Over