The Zero Lower Bound Refers To

question 111

Multiple Choice

The zero lower bound refers to:

• A) the fact that the reserve requirement must always be greater than zero.
• B) the Federal Reserve's inability to push the nominal interest rate below zero.
• C) the Federal Reserve's goal of maintaining full employment.
• D) None of these describe the zero lower bound.

---

Definitions:

Interpersonal

Pertaining to the interactions and relationships between individuals.

Informational

Pertaining to information, often focusing on the dissemination, processing, or use of knowledge.

Decisional

Decisional refers to anything related to the process of making decisions or choices among alternatives.

Open Systems

Transform human and material resource inputs into finished goods and services.