Which of the following is true of the 2008 Troubled Asset Relief Program (TARP)?
A) It was a contractionary monetary policy.
B) It was a mix of monetary and fiscal policies.
C) It was mainly aimed at reducing inflation.
D) It was a contractionary fiscal policy.

Question

Quizplus · Accepted Answer

The 2008 Troubled Asset Relief Program (TARP) was a mix of monetary and fiscal policies aimed at stabilizing financial markets and preventing further economic collapse. It involved the government providing funds to banks and other financial institutions in order to prevent their collapse and ensure they had the liquidity needed to continue lending. This can be seen as both a monetary policy (providing liquidity to the markets) and a fiscal policy (direct spending by the government).

Which of the Following Is True of the 2008 Troubled