-The U.S. monetary policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure and thereby increasing AD.
B) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing SAS.
C) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing AD.
D) decrease the exchange rate in order to boost net exports, thereby increasing AD.

Question

-The U.S. monetary policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure and thereby increasing AD. 
B) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing SAS. 
C) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing AD. 
D) decrease the exchange rate in order to boost net exports, thereby increasing AD.

Quizplus · Accepted Answer

The U.S. monetary policy in 2008, primarily through the Federal Reserve, focused on decreasing interest rates to stimulate business investment and consumption expenditure. This was aimed at increasing Aggregate Demand (AD) in the economy to counteract the effects of the financial crisis.

-The US Monetary Policy Implemented in 2008 Was an Attempt to to