Asked by Regina Orzechowski on Jun 19, 2024
Verified
The severity of the 2007-2009 recession was increased because of the
A) election of a Democrat President.
B) loss of congressional control by the Republicans.
C) extreme tightening of credit in 2008.
D) the stimulus bill and the TARP funds for the financial industry.
2007-2009 Recession
A period of global economic downturn that began in December 2007 and ended in June 2009, marked by significant declines in economic activity worldwide.
Credit Tightening
A financial condition where lenders restrict the availability of loans, making it harder to borrow, often to curb inflation or cool down an overheating economy.
- Identify the measures taken during economic recessions to stabilize the economy.
Verified Answer
JT
Jodyne TriplettJun 23, 2024
Final Answer :
C
Explanation :
The extreme tightening of credit in 2008 significantly contributed to the severity of the 2007-2009 recession by making it difficult for businesses and consumers to borrow money, leading to a decrease in spending and investment.
Learning Objectives
- Identify the measures taken during economic recessions to stabilize the economy.