Question

From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, amount of Federal Reserve assets rose, leading to
A) a huge increase in the monetary base.
B) a huge expansion of the money supply.
C) an economic expansion.
D) a high inflation

Answer 1

Answer: The correct answer is choice A - a huge increase in the monetary base.

Explanation: From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2008, the amount of Federal Reserve assets rose, leading to a huge increase in the monetary base.