Explain how the zero lower bound for the interest rate controlled by the Fed has an impact

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Explain how the zero lower bound for the interest rate controlled by the Fed has an impact on the effectiveness of monetary policy. Discuss what mix of monetary and fiscal policy can be used to increase economic activity when the zero lower bound is reached. Finally, evaluate the validity of the arguments presented against that policy mix when the zero lower bound is reached.
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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