In response to the Great Recession of 2007–2009, the U.S. Federal Reserve (Fed)

ID: 1134627 • Letter: I

Question

In response to the Great Recession of 2007–2009, the U.S. Federal Reserve (Fed) conducted quantitative easing, which would pump more dollars into the economy and cause interest rates to fall. Which of the following was not a criticism of the policy?

A- The policy could lead to a depreciation in the dollar's exchange value.

B- The policy could improve American competitiveness at other nations' expense.

C- The rest of the world's producers could see their exports begin to fall.

D- Americans goods would become more expensive for foreign consumers.

Explanation / Answer

The asnwer is B -) The policy could improve American competitveness at other nation's expense.

because In response to the Great Recession of 2007–2009, the U.S. Federal Reserve (Fed) conducted quantitative easing, which would pump more dollars into the economy and cause interest rates to fall. crtitcism says it will lead to a new financial crises, raging inflation and punished responsible savers.

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In response to the Great Recession of 2007–2009, the U.S. Federal Reserve (Fed)

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