In 2003-2004,the Fed kept the Federal Funds rate:
A) low,because the recession had not ended yet.
B) low,even though the recession had ended.
C) high,because the recession had ended.
D) high,because the recession had not ended yet.

Question

Quizplus · Accepted Answer

The Federal Reserve kept the Federal Funds rate low during 2003-2004 even though the recession, which began in March 2001, had officially ended by November 2001. The low rates were maintained to support the economic recovery and address the risk of deflation.

In 2003-2004,the Fed Kept the Federal Funds Rate