Asked by Anonymous JAK

After the housing market collapse in the late 2000s, the U.S. economy suffered a downturn. In what ways could the Federal Reserve reduce the size of this downturn?

A) It could raise the interest rates to double what they were.

B) It could decrease the interest rates on banks loans. *

C) It could buy and rebuild houses to create jobs.

D) It could sell mortgages to improve housing market growth.
Answered by Reed
Correct, which is what it did.
Answered by Victor
C) It could buy and rebuild houses to create jobs.
Answered by Gabriella
Wait, so is it B or C???
Answered by Gabriella
Wait nevermind, B is more reasonable for it.