Final answer:
The statement that the Great Recession led to bailouts only in the US is not true. Bailouts occurred globally due to the interconnectedness of the economy. The crisis caused a widespread economic downturn, resulting in government actions to stabilize the markets.
Step-by-step explanation:
You asked which statement is NOT true about the Great Recession of 2008. The correct answer is that the crisis did not lead to massive government bailouts of failed firms and banks only in the US. This is false because government bailouts occurred in other parts of the world as well. The Great Recession revealed how interconnected the global economy had become with issues like the deteriorating housing markets in the US, fueled by unsustainable subprime lending practices. It caused global output, trade, and investment to plummet, with widespread consequences.
International trade slowed, affecting many American businesses. The crisis grew deeper as ordinary citizens suffered job losses and economic hardship, while expensive federal bailouts sought to rescue failing financial institutions, generating significant public resentment.
The US signed the American Recovery and Reinvestment Act of 2009 in response, providing stimulus through spending and tax cuts to stabilize the economy and restore financial market stability along with aggressive fiscal and monetary policy actions.