[Solution]Some analysts blame the financial crisis of 2008 on Fed policy

Some analysts blame the financial crisis of 2008 on Fed policy. They argue that:Answera restrictive policy lowered aggregate demand and GDP.low interest rates encouraged excessive…

Some analysts blame the financial crisis of 2008 on Fed policy. They argue that:Answera restrictive policy lowered aggregate demand and GDP.low interest rates encouraged excessive mortgage borrowing, leading to the housing bubble.the Fed securitized the mortgages into collateralized debt obligations and encouraged excessive risk taking.the Fed did not adequately regulate the mortgage market’s credit standards for issuing loans as required by the Federal Reserve Act.Using real GDP and employment growth relative to the peak of the business cycle, the 2007-2009 recession, as compared to the previous two recessions in 1990 and 2001:Answerwas deeper.was less severe.was shorter.was shorter but more severe.During the period 2008–2009, _______ million people lost their jobs.Answer34712

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