Expansionary policy that followed the 2008 recession: A. led to higher inflation rates than expected. B. did not reduce unemploy

Question

alexandr1967 [171]

4 years ago

10

Expansionary policy that followed the 2008 recession: A. led to higher inflation rates than expected. B. did not reduce unemploy

ment as much as desired. C. did not reduce the trade deficit as much as desired. D. led to higher growth rates than expected.

History

1 answer:

Nataly_w [17] · Answer 1 · 2022-02-05T03:00:47+03:00

Answer:

B. Did not reduce unemployment as much as desired.

Explanation:

After the Financial Crisis hit, the Federal Reserve did three rounds of Quantitative Easing. Quantitative Easing simply consists in injecting large amounts of money in the economy with the goal of boosting activity.

Quantitative easing helped end the recession, but unemployment continued to be high until the second term of Barack Obama, when the three rounds of Quantitative easing had already taken place.