As the Fed increased the volume of loans to financial institutions in response to the 2008 financial crisis, this resulted in

a. a vast increase in the monetary base and the excess reserves of the commercial banking system.
b. a substantial increase in short term interest rates.
c. a sharp decrease in the monetary base and a contraction in the excess reserves of the commercial banking system.
d. an increase in the volume of loans extended by commercial banks and a sharp increase in the inflation rate.

A

Economics

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Economics