In 2008, Federal Reserve Chairman Ben Bernanke made credit more available within the U.S. financial system by loaning money to banks. This action was to encourage a(n) (4 points) Group of answer choices contraction expansion peak trough

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13-07-2022
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In 2008, Federal Reserve Chairman Ben Bernanke made credit more available within the U.S. financial system by loaning money to banks. This action was to encourage a(n) (4 points) Group of answer choices contraction expansion peak trough

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sharmaaashutosh169 sharmaaashutosh169 · Answer 1 · 2022-07-20T13:17:11+02:00

The action will encourage expansion.

When the financial crisis came, people bought billions of dollars in equities, mortgage instruments, and bonds straight from the United States Treasury.

Expansionary policy aims to stimulate company investment and consumer spending by infusing money into the economy, either directly through government deficit spending or through increased lending to firms and consumers.

Tax cuts and the increased government expenditure are the two primary elements of the expansionary fiscal policy. Both of these program aim to boost aggregate demand while adding to deficits or reducing budget surpluses.

Therefore, the answer is expansion.

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