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The Fed has conducted expansionary monetary policy to combat a recession but is running up against the zero lower bound, and the economy is still not recovering. What other steps could the government take to try to stabilize the economy

Respuesta :

Answer: Employ various monetary policy tools in order to reduce unemployment rates and inflate prices.

Explanation:

The Fed would need to employ various monetary policy tools in order to reduce unemployment rates and inflate prices. The tools needed for this are open market asset purchases, reserve regulation, discount lending and forward guidance on how to manage market expectations.

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