Question: In the midst (middle) of a recession
A. Fed's monetary policy to end the recession is highly effective as banks start loaning out funds
B. Fed's monetary policy to end the recession is highly effective as the public borrows more funds
C. Fed's monetary policy to end the recession is not effective
Economics Homework help, please?
I believe the answer is C. If it were a recession banks would not help the economy by loaning out money. IT would only make matters worse. How will the people be able t pay back these loans. There is no way to determine how long the recession may be.
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