One Factor Limiting the Federal Reserve's Ability to Use Monetary

question 72

Multiple Choice

One factor limiting the Federal Reserve's ability to use monetary policy to stimulate the economy is that the Federal Reserve has

• A)no tools at its disposal to lower interest rates.
• B)tools to lower interest rates, but they do not work at interest rates above 10%.
• C)tools to lower interest rates, but they do not work at interest rates below 10%.
• D)tools to lower interest rates, but they do not work at interest rates below 0%.