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If the economy is below potential and interest rates are at the zero bound, how can the Federal Reserve still push long-term interest rates down?
If the economy is below potential and interest rates are at the zero bound, how can the Federal Reserve still push long-term interest rates down? Question 3 options: a) through forward guidance and quantitative easing b) by relying on fiscal policy c) through the Open Market Trading Desk at the New York Federal Reserve district bank d) by using open market operations
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