Question

When the U.S. government launched a massive rescue plan in response to the 2008-2009 financial crisis, the overall demand for loanable funds ________ because the ________.
A) increased; demand by households, businesses, and financial institutions increased as did the federal government demand
B) decreased; demand by households, businesses, and financial institutions changed by the same amount as the federal government demand
C) decreased; demand by households, businesses, and financial institutions decreased by more than the federal government demand increased
D) increased; demand by households, businesses, and financial institutions increased by more than the federal government demand increased
E) did not change; demand by households, businesses, and financial institutions changed by the same amount as the federal government demand

Answer

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