In Response to the Recession of 2008-2009, the Fed Doubled

Multiple Choice

In response to the recession of 2008-2009, the Fed doubled its asset holdings from $925 billion at mid-year 2008 to more than $2 trillion by mid-year 2009. This policy

A) reduced the reserves available to banks, leading to a larger money supply.
B) reduced the reserves available to banks, causing the money supply to decline.
C) increased the reserves available to banks, leading to a larger money supply.
D) increased the reserves available to banks, causing the money supply to decline.