During the Recession of 2007-09, the U.S.Fed

Multiple Choice

During the recession of 2007-09, the U.S.Fed

A) carefully reduced interests rates step by step until it achieved its desired target level
B) wasted a lot of time before it realized how severe the recession actually was, but then responded with massive open market sales
C) stuck to its monetary growth targets in an effort to calm financial markets
D) reduced short-term interest rates rapidly until they were close to zero percent
E) kept unemployment below 8 percent by rapidly increasing money supply