Chapter 14: Q. 28 (page 353)

What do you think the Federal Reserve Bank did
to the reserve requirement during the 2008–2009 Great
Recession?

Short Answer

Expert verified

Expansionary monitory policy which lowered its interest rates and subsequently expanded credit and liquidity.

Step by step solution

Concept Introduction

During $2008 - 2009$ the Great Recession, the federal reserve lowered the reserve requirement rate which led to lower interest rates, and that further led to higher spending throughout the economy.

:Explanation of Solution

During the Great Recession for the faster growth of the economy and to create jobs Federal Reserve used expansionary monitory policy which lowered its interest rates and later expanded credit and liquidity.

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What do you think the Federal Reserve Bank did
to the reserve requirement during the 2008–2009 Great
Recession?

Short Answer

Step by step solution

Concept Introduction

:Explanation of Solution

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Most popular questions from this chapter

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What do you think the Federal Reserve Bank didto the reserve requirement during the 2008–2009 GreatRecession?

Short Answer

Step by step solution

Concept Introduction

:Explanation of Solution

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

What do you think the Federal Reserve Bank did
to the reserve requirement during the 2008–2009 Great
Recession?