When the housing bubble collapsed,the Fed dramatically increased interest rates to stimulate employment.

Question

Quizplus · Accepted Answer

When the housing bubble collapsed, the Fed actually lowered interest rates to try and stimulate the economy by encouraging borrowing and spending. This policy is known as "quantitative easing." It was aimed at boosting employment and inflation, not stimulating employment with higher interest rates.

When the Housing Bubble Collapsed,the Fed Dramatically Increased Interest Rates