Many economists favoured using discretionary fiscal policy during the Great Recession because monetary policy could not be used when interest rates were near zero.

Question

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During the Great Recession, the Federal Reserve had already lowered interest rates to zero (or near-zero), which limited the effectiveness of monetary policy. As a result, many economists recommended the use of discretionary fiscal policy (e.g. government spending and taxes) to stimulate the economy.

Many Economists Favoured Using Discretionary Fiscal Policy During the Great