Aggressive policy measures taken by the monetary authority during the 2007-2008 financial crisis in the United States resulted in:
a. avoidance of a recession caused by a tight credit market.
b. almost no transmission of the monetary stimulus to market rates of interest, increased lending, and expansion of GDP.
c. lower rates of interest and increased investment activity.
d. an increase of real GDP and a fall in the core unemployment rate.
Ans: b. almost no transmission of the monetary stimulus to market rates of interest, increased lending, and expansion of GDP.
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