What made the recession of 2007-2009 different than any other recession since the Great Depression?
A) The government did not implement a fiscal stimulus.
B) The Fed failed to reduce interest rates.
C) It was accompanied by a financial crisis.
D) The impact was primarily limited to the financial sector.

Question

Quizplus · Accepted Answer

The recession of 2007-2009 was different from any other recession since the Great Depression because it was accompanied by a financial crisis. The collapse of the housing market and the failure of many financial institutions led to a severe credit crunch, which exacerbated the economic downturn. The government did implement fiscal stimulus measures and the Fed reduced interest rates, but the financial crisis made this recession unique. The impact was not limited to the financial sector, but was felt across many industries and sectors.

What Made the Recession of 2007-2009 Different Than Any Other