The ZIRP (Zero Interest Rate Policy) of the Fed Led

question 127

Multiple Choice

The ZIRP (zero interest rate policy) of the Fed led to the so-called zero lower bound problem, which refers to the problem of

• A) having a very low level of employment with zero new jobs created.
• B) huge budget deficits leaving the government no more ability to spend.
• C) interest rates that can't go any lower, i.e., they cannot be driven down below zero.
• D) zero real-GDP growth due to very weak aggregate demand.

---

Definitions:

Routine Requests

Simple, standard inquiries or appeals for information, services, or assistance that follow established protocols.

Message Forcefulness

The degree of strength or assertiveness with which a message is conveyed, often influencing its persuasive power.

Press Release

An official statement issued to the media to announce something of interest, such as events, products, or corporate news.

Positive Message

A communication that conveys good news, positive feedback, or an affirmative outcome.