Once the federal funds rate is reduced to zero, conventional expansionary monetary policy is no longer an option.

Name: Once the federal funds rate is reduced to zero, conventional expansionary monetary policy is no longer an option.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

Once the federal funds rate is at zero, the central bank cannot lower it further to stimulate borrowing and spending. This means that conventional monetary policy is no longer effective and alternative measures need to be considered.

Once the Federal Funds Rate Is Reduced to Zero, Conventional