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How did the Fed encourage business confidence after the September 11 terrorist attacks? by lowering corporate...

How did the Fed encourage business confidence after the September 11 terrorist attacks? by lowering corporate taxes by reducing money supply by lending billions to banks by putting a moratorium on bank loans

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Answer #1

Correct option is (3).

After the 9/11 attack, business confidence in US went too low, so Fed stimulated business investment by lending billions of dollars to banks which the banks used for easier credit lending purposes to firms, which increased business investment and increased aggregate demand.

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