Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?

Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?

Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?




A) Open market operation
B) Discount policy
C) Required reserve ratio
D) The Fed's liquidity provision



Answer: D