True/False questions. Explanation determines the grade.

6. During the Great Recession, the U.S. Treasury used TARP funds to help homeowners with negative home equity.

7. Practicing fiscal austerity during the Great Recession was an effective way to not only stimulate the economy by lowering interest rates but also to maintain stable political regimes.

8. There was no additional fiscal stimulus in the U.S. after 2009 because the economy was on track to catch up with the potential output.

9. In the aftermath of the Great Recession, systemically important institutions are required to have a limited global exposure to risk.

10. The Fed failed to exercise its role of the lender of last resort in handling the collapse of Lehman brothers.