When Interest Rates Are Already at Zero During a Recession

Multiple Choice

When interest rates are already at zero during a recession, a central bank would:

A) have little leeway to further reduce interest rates in order to stimulate the economy.
B) not be able to engage in any type of policy to stimulate the economy.
C) need to spend more money in order to stimulate the economy.
D) likely work with Congress to stimulate the economy.