The Fed's Response to the Zero Lower Bound Problem Was

question 13

Multiple Choice

The Fed's response to the zero lower bound problem was quantitative easing (or "QE") , where the Fed buys large amounts of bonds in order to

• A) lower the interest rates.
• B) increase banks' reserves.
• C) lower bond prices.
• D) reduce money supply.

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Definitions:

Infant Mortality Rates

A statistical measure that represents the number of deaths of infants under one year old per 1,000 live births in a given year.

One Year

A period consisting of 12 consecutive months.

Fewer Than

A comparative term indicating a smaller quantity or number of items, objects, or people.

Morbidity Rates

Indicate the number of people who suffer from particular illnesses per 100000 members of a population.