Before the ﬁnancial crisis of 2008, expansionary monetary policy would have entailed the Fed targeting a lower federal funds rate and
using open-market purchases to increase bank reserves to cause the federal funds rate to hit its target.

Question

Quizplus · Accepted Answer

This was the typical approach to expansionary monetary policy before the 2008 financial crisis.

Before the ﬁNancial Crisis of 2008, Expansionary Monetary Policy Would