The Great Moderation Consensus Agreement That a Decrease in the Interest

Multiple Choice

The Great Moderation consensus agreement that a decrease in the interest rate was the best policy for fighting a recession was ineffective in the Great Recession because:

A) the central bank bought government securities,but interest rates did not fall.
B) interest rates were already close to zero.
C) financial institutions were engaging in maturity transformation.
D) the federal government increased taxes.