The Fed has decreased the federal funds ratea nominal short-term interest rateto 0%, and yet the economy
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The Fed has decreased the federal funds rate—a nominal short-term interest rate—to 0%, and yet the economy is still struggling. Explain what tools it still has at its disposal to help spur the economy, and how it could use them.
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When the Federal Reserve decreases the federal funds rate to 0 and the economy still struggles it indicates that traditional monetary policy tools may ...View the full answer
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Related Book For 
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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