When an Economy Is at a Zero Lower Bound, a Central

question 84

Multiple Choice

When an economy is at a zero lower bound, a central bank looking to stimulate the economy can:

• A) do nothing; liquidity traps prevent further policy action.
• B) use quantitative easing.
• C) lower the reserve requirement.
• D) keep the discount window open longer.

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Definitions:

No-Meetings Task Policy

A workplace strategy that allocates certain periods or days without scheduled meetings to increase productivity and focus on task execution.

High-Performance Results

Outcomes that significantly exceed the standard or expected levels of achievement.

Performance Potential

The capacity or ability of an individual or organization to attain and exceed predetermined goals or targets.

Team Training

A process of teaching a group of individuals to work together effectively, enhancing their collective skills in communication, decision-making, and problem-solving.