What was the intent behind the intervention of the Fed and Treasury in financial markets during the Financial Crisis of 2007-2009?
What will be an ideal response?
The actions by the Fed and Treasury were meant to restore the flow of funds between savers and borrowers. Without an increase in the flow of funds to a more normal level, households would have a difficult time making certain purchases and businesses would have difficulty financing investments and inventories.
Economics
You might also like to view...
What is the ceteris paribus condition?
What will be an ideal response?
Economics
The currency depreciations and the recessions during the Asian crisis did lead to improvement in the Asian countries' current account balances, largely through
A. decreases in imports. B. decreases in capital outflows. C. increases in the rate of inflation in these countries. D. increases in exports.
Economics