If the Fed Funds Rate Is Only 1%, the Economy

question 103

Multiple Choice

If the Fed funds rate is only 1%, the economy is dangerously close to:

• A) an inflationary spiral.
• B) a liquidity trap.
• C) very high unemployment.
• D) another recession.

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Definitions:

Slow Economy

A state of economic growth that is lower than expected or desired, often characterized by reduced consumer spending, low industrial production, and increased unemployment rates.

Virtual Teams

Groups of individuals who work together from different geographic locations and rely on communication technology such as email, video conferences, and messaging apps to collaborate.

Communications Technology

The use of tools and platforms to facilitate electronic communication, such as email, social media, and video conferencing.

Undocumented Immigrants

Individuals residing in a country without the legal permission or documents required by immigration regulations.