In response to the zero lower bound problem:
A. the Fed implemented the zero interest rate policy (ZIRP).
B. Congress approved additional fiscal stimulus in 2010.
C. the Fed pursued quantitative easing.
D. the Fed ended its forward commitment in order to encourage further lending.
C. the Fed pursued quantitative easing.
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Every economic model should include money as a variable. This statement is
A) true, because every transaction in the economy uses money. B) true, because the federal reserve is very important. C) false, because some transactions in the economy are transacted without money. D) false, because a model can get unnecessarily complex if it includes money.
Which of the following decisions best reflects marginal thinking?
a. deciding to get married b. starting a new business c. attending graduate school d. switching phone carriers