During the Financial Crisis of 2007-2009, Why Did the Federal

question 69

Multiple Choice

During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?

• A)The federal funds rate had already been increased as much as possible.
• B)The discount rate had already been increased as much as possible.
• C)The federal funds rate had already been reduced to zero.
• D)The discount rate had already been reduced to zero.