If the federal government ________ during the financial crisis of 2008-2009, the negative wealth effect would likely have been larger.

Question

Quizplus · Accepted Answer

If the federal government had not bailed out the large financial institutions, the negative wealth effect would likely have been larger as it would have caused a ripple effect throughout the economy, leading to job losses, bankruptcies and a general decline in consumer confidence. The bailout helped prevent a complete collapse of the financial system and stabilized the economy.

If the Federal Government ________ During the Financial Crisis of 2008-2009