Question

In what way was the 2008-09 US Great Recession “normal”?

Multiple Choice

• Because the rich got richer.

• Because the economy and lending recovered so quickly.

• Because quantitative easing was the main reason for economic recovery.

• The Great Recession was similar to the average country financial crisis since World War II.

• Because the Great Recession was a beautiful deleveraging.

Answer 1

Answer-

The correct Option is Because the Great Recession was a beautiful deleveraging.

One might argue that  while many forms of debt have increased since the Great Recession but the total debt to GDP has actually declined and the U.S. is in the midst of a "beautiful deleveraging..

The depressions happen only after interest rates have been reduced to zero and  extensive Quantitative Easing (QE) was implemented which leads to substantial deleveraging.

The first four options are incorrect as these statements do not support the 2008 reession as normal as the rich did not became richer, economic recovery was very slow, QE alone was not main reason for economic recovery and Great recession was worse than financial crisis during World War II.