Which of the following did the Fed do during the recession of 2008-2009?
A)lowered the federal funds rate and sold securities and loans
B)lowered the federal funds rate and purchased securities and loans
C)raised the federal funds rate and sold securities and loans
D)raised the federal funds rate and purchased securities and loans

Question

Quizplus · Accepted Answer

During the recession of 2008-2009, the Fed lowered the federal funds rate to encourage borrowing and investment. In addition, they purchased securities and loans in order to inject more money into the economy and increase liquidity. Lowering interest rates and purchasing assets are both ways in which the Fed implements expansionary monetary policy.

Which of the Following Did the Fed Do During the Recession