Fighting recession with low interest rates is technically impossible when we have large trade deficits and huge national debt.

Question

Quizplus · Accepted Answer

Lowering interest rates can encourage borrowing and spending, but if a country has a large trade deficit and national debt, it may not have enough resources or productive capacity to sustain economic growth. In such a situation, other measures such as fiscal policy or structural reforms may be needed.

Fighting Recession with Low Interest Rates Is Technically Impossible When