Question
The Federal Reserve gets some credit for rapidly slashing interest rates to near zero and intervening in markets to prevent the economic crisis from becoming
The Federal Reserve gets some credit for rapidly slashing interest rates to near zero and intervening in markets to prevent the economic crisis from becoming a financial crisis. But once the Feds interest rate ammunition was exhausted, fiscal policy rose to the challenge. Congress ultimately authorized $5.9 trillion of emergency measures of which $4.6 trillion has been spent, according to the Committee for a Responsible Federal Budget.
Analyze the statement above. What concepts in Finance does this relate to and how so? (monetary policy, fiscal policy, interest rates, fed fund rate, target rate, inflation, etc)
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