A Situation in Which a Zero Interest Rate Has Been

question 174

Multiple Choice

A situation in which a zero interest rate has been reached, and yet the Fed continues to increase the money supply by increasing reserves, is known as

• A)a liquidity trap.
• B)an asymptotic limit.
• C)quantitative easing.
• D)a liquidity expansion.
• E)None of these.

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Definitions:

Entity Theory

In Dweck’s theory of motivation, an individual’s belief that abilities are fixed and unchangeable.

Incremental Theory

In Dweck’s theory of motivation, an individual’s belief that abilities can increase with experience and practice.

Ability

The capacity or competence to perform or achieve a specific task or skill.

Idiographic Goal

An approach that focuses on understanding the unique, individual aspects of a person's behavior and personality.