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:

Different

means not being the same as another or each other.

Importance

denotes the significance or value attached to something.

Interns

are individuals, often students, who work temporarily in a job to gain work experience or satisfy requirements for a qualification.

Reflect

means to think deeply or carefully about something.