Once interest rates reach zero, the Fed has no further options for fighting recessions.

Name: Once interest rates reach zero, the Fed has no further options for fighting recessions.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While it is true that the Fed cannot lower interest rates further once they reach zero, they still have several other tools at their disposal to combat recessions. These include implementing quantitative easing, forward guidance, and adjusting reserve requirements for banks.

Once Interest Rates Reach Zero, the Fed Has No Further