Unlike the 1930s,the Federal Reserve System followed an easy money policy in the first decade?of the 2000s and,consequently,was able to prevent a severe recession from following a period of notably high economic activity.

Question

Quizplus · Accepted Answer

The statement is true. The Federal Reserve System followed an easy money policy in the 2000s, which helped prevent a severe recession following a period of high economic activity. This policy involved reducing interest rates and increasing the money supply to stimulate economic growth. In contrast, during the 1930s, the Federal Reserve implemented a tight money policy, which contributed to the severity and length of the Great Depression.

Unlike the 1930s,the Federal Reserve System Followed an Easy Money