Asked by Mariane Edelstein on Apr 29, 2024
Verified
Monetary policy to avert the Great Recession of 2008 -2009 was initiated in ________ and the government stimulus package was passed in __________.
A) 2006;2007.
B) 2007;2008.
C) 2008;2009.
D) 2008;2008.
Great Recession
A global economic downturn that began in 2007 with the collapse of the housing bubble in the US, leading to widespread financial and economic crises.
Monetary Policy
Actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Government Stimulus Package
A package of economic measures by a government aimed at stimulating a struggling economy by boosting spending and investment through various means such as tax cuts, spending increases, or lowering interest rates.
- Understand the link between actions taken in monetary policy by the Federal Reserve and subsequent economic outcomes.
Verified Answer
AK
Addison KelleyMay 01, 2024
Final Answer :
C
Explanation :
Monetary policy measures were initiated by the Federal Reserve in 2008 in response to the increasing economic crisis, and the government stimulus package was passed later in 2009 after President Barack Obama took office. Therefore, the best choice for the answer is C.
Learning Objectives
- Understand the link between actions taken in monetary policy by the Federal Reserve and subsequent economic outcomes.