Reasons that the recession of 2008-2009 did not become a depression include:
I.The Fed bailed out troubled financial institutions.
Ii.The government aggressively balanced its budget.
Iii.The government increased its expenditures,which increased aggregate demand.
A)i only
B)ii only
C)iii only
D)i and iii
E)i and ii

Question

Quizplus · Accepted Answer

The recession of 2008-2009 did not become a depression partly because the Federal Reserve bailed out troubled financial institutions (i) and the government increased its expenditures, which boosted aggregate demand (iii). Balancing the budget (ii) was not a factor in preventing a depression.

Reasons That the Recession of 2008-2009 Did Not Become a Depression