The Lowering of the Federal Funds Rate to Nearly Zero

question 30

Multiple Choice

The lowering of the federal funds rate to nearly zero in 2008 is an example of the use of

• A)the traditional tools of monetary policy.
• B)new tools of monetary policy.
• C)discretionary fiscal policy.
• D)all of the options are correct.

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Definitions:

Bad-News Message

A communication strategy used to relay unfavorable or disappointing information in a sensitive and considerate manner.

Neutral Buffer

An introductory statement that is neither positive nor negative, used to prepare the receiver for the message that follows, often in sensitive or unwelcome communications.

E-mails

Electronic messages sent over the internet, used for personal, academic, and professional communication.

Memos

Short for memorandums; these are brief written communications typically used within an organization to disseminate information or instructions.