Question

What was the unintended consequence or outcome of this monetary policy? A) The 9-11 attacks on Washington and New York City B) Rising inflation, a crash in the "housing bubble," and a recession from 2007-2010 C) Lower inflation and the largest growth in rGDP since WWII with a healthy economy into 2013 D) Rising inflation and the arrest of the Federal Reserve Chairman for causing the Great Depression

Answer 1

The correct answer is B.

 Rising inflation, a crash in the “housing bubbles”, and a recession from 2007-2010 was the unintended outcome of the monetary policy of the Federal Reserve. Fueling the housing boom of the early to mid-2000s helped to lower interest rates.

Federal Reserve raised interest rates to curb inflation when prices of houses began to skyrocket. The market in hosing crashed which caused the economy to plunge into a recession.

Answer 2

Answer:

the answer is B

Explanation: