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02:01:09 Time llemainity 23 Multiple Choice 1 point Assume theeconomic recovery during post-Covid 19 pandemic was expected tostart after ending the Covid-19 crisis presumably late Fall of 2020. Under the conditions in short term financial market crisis andthe economic recession in coming summer and fall of 2020 , the Fedhas expanded a masslve easy lending program on April 9,2020 underthe statement below: ablify of state and local governments todeliver critical services during the coronavinus pandemic. aspossible", the press release stated on April 9, 2020. The usl linkto read the transorpt is below: This policy measure is similar tothe quantitative easing policy the Fed took during the recoveryprocess of 2008 Great recession Q23: From your knowledge on thistopic from this course learning, how this massive loas of

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to support the financial institutions and households of allsizes would lelp recover the economy without acceleratinginflation? Expand the bank reserve to avoid liquidity shortage bybanks' increasing default rate Increase in such a massive liquidityin financial sector during economic depeession is unlikely toaccelerate inflation at least in the short run until the economystarts recovery. All of the above are possible expocted resultsfrom this moectary policy action Prevent the financial market frompossible meltdown like that happened in 2008 financial crisis

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