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A monetary policy that is marked by a decrease in demand of loans, even at a very low interest rate is not effective at all. During a recession, the government lowers fed funds, interest rates, or both to spark the economy. As interest rates are lowered, the amount of money in circulation increases; as a result, more individuals acquire loans in such times. However, if interest rates are very low and an economic spark did not occur, the monetary policy did not address other factors such as inflation and unemployment. If interest rates are low and unemployment is high, the number of consumers who take advantage of such rates will not substantially offset a slumping economy...

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