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

question 69

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:

Legitimate Power

The power a person receives as a result of their position in the formal hierarchy of an organization.

Referent Power

A form of influence based on the charisma and interpersonal appeal of the power-holder, rather than on formal positions or commands.

Virtuous Power

Power exercised with moral integrity and for the greater good, often characterized by fairness, justice, and a concern for others' well-being.

Bertrand Russell

A British philosopher, logician, mathematician, historian, writer, and social critic, known for his work in mathematical logic and analytic philosophy.