During the fall of 2007, the united states economy began a descent into deep recession. as a result, the federal government and the federal reserve took action to stimulate economic growth. which of the following would have been an appropriate fiscal policy? choose one or more:
a. the federal government spending more money to build more infrastructure
b. the federal government increasing its regulation of banks
c. the federal government beginning to close failing banks
d. the federal government providing tax refunds to many taxpayers
e. the federal reserve increasing the money supply to reduce the interest rate

Select the correct answer. after the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy? a. the interest rate on loans will fall. b. people will demand more foreign goods. c. people will start borrowing more money. d. the economy will face inflation. e. foreign investments will increase.