Reasons that the recession of 2008-2009 did not become a depression include i. The Fed bailed out troubled financial institutions
Ii. The government aggressively balanced its budget
Iii. The government increased its expenditures, which increased aggregate demand
A)iii only
B)i only
C)i and ii
D)ii only
E)i and iii

Question

Quizplus · Accepted Answer

The Federal Reserve bailed out financial institutions to stabilize the financial system, and the government increased expenditures to boost aggregate demand, both of which helped prevent a depression.

Reasons That the Recession of 2008-2009 Did Not Become a Depression