In the Event That Nominal Interest Rates Cannot Be Lowered

question 19

Multiple Choice

In the event that nominal interest rates cannot be lowered further, the Federal Reserve might rely on________.

• A) federal government fiscal policy.
• B) targeting the fed funds rate.
• C) quantitative easing.
• D) targeting the inflation rate.

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Definitions:

Universal Instantiation

A logical rule of inference that allows one to deduce a particular instance from a universal statement, essentially moving from a general statement to a specific example.

Existential Generalization

A logical inference rule stating that if something is true for some member of a domain, then it is true that there exists something in that domain for which the proposition holds.

Quantifier Negation

The process of changing the quantifier in a statement, such as from "all" to "not all," to negate its original meaning.

Universal Generalization

A principle of deductive reasoning that allows one to conclude that something is true for all cases after confirming it is true in every observed case.