The high growth rates of money in the late 2000s is likely due to:
A)the Fed not wanting to repeat mistakes made during the Great Depression.
B)the rise in the overall price level.
C)a rise in inflation expectations.
D)the appointment of a new Fed chairman.
E)prodding from the Bush and Obama administrations.

Question

Quizplus · Accepted Answer

The Federal Reserve increased money supply significantly during the late 2000s to avoid the deflationary spiral and economic contraction experienced during the Great Depression, aiming to stabilize the financial system and support economic recovery.

The High Growth Rates of Money in the Late 2000s