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How is expansionary monetary policy, or more specifically a open market purchase, supposed to work?

How is expansionary monetary policy, or more specifically a open market purchase, supposed to work?

I need an explanation for this Economics question to help me study.

RESPOND TO THE FOLLOWING PROMPTS IN A POST WITH A MINIMUM OF 150 WORDS

  • Since the end of the Great Recession of 2008, interest rates have been at historic lows—in some cases, close to zero. How is expansionary monetary policy, or more specifically a open market purchase, supposed to work? How do near-zero interest rates limit the ability of expansionary monetary policy to work?
  • In your opinion, how effective has the Fed’s policy been as a response to the Great Recession of 2008 and more recently the Covid 19 Recession? Please share evidence/article to support your position.
  • Useful Links:
  • Link 1
  • Link 2

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