The aim of unconventional monetary policy tools is to:
A)stimulate the economy in coordination with fiscal policy.
B)slow down liquidity and increase interest rates.
C)boost liquidity and reduce interest rates when credit channels are clogged.
D)increase the value of the dollar.

Question

Quizplus · Accepted Answer

Unconventional monetary policy tools, such as quantitative easing, are primarily used to boost liquidity and reduce interest rates, especially when traditional monetary policy tools are ineffective, such as during periods when credit channels are clogged or interest rates are already near zero.

The Aim of Unconventional Monetary Policy Tools Is To