If the Target Federal Funds Rate Reaches Zero

question 79

Multiple Choice

If the target federal funds rate reaches zero:

• A)the FOMC would run out of policy options.
• B)monetary policy would no longer be of use.
• C)the FOMC would turn to unconventional measures, such as forward guidance.
• D)the FOMC would simply reset the target.

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Definitions:

Plantar Flexes

The movement decreasing the angle between the dorsum of the foot and the leg, for example, standing on tiptoes.

Fibularis Brevis

A muscle of the lower leg that assists in plantar flexing and everting the foot.

Calf Bulge

The appearance of an enlarged or prominent portion of the calf muscle on the back of the lower leg.

Gastrocnemius

A major muscle in the calf of the leg, involved in walking, running, and jumping.