The 2007-2009 recession was brought on when the Fed used excessive tightening of the money supply to solve the stagflation of 2004 to 2007.

Question

Quizplus · Accepted Answer

The 2007-2009 recession was primarily caused by the subprime mortgage crisis and the collapse of the housing market, which led to a domino effect on the financial sector. While the Fed may have played a role in exacerbating the crisis, it was not directly responsible for causing it through excessive tightening of the money supply.

The 2007-2009 Recession Was Brought on When the Fed Used