The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
A) an interest rate panic. B) the Taylor rule.
C) a zero-sum game. D) a liquidity trap.
D
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Next year's expected price of oil is $88 per barrel and the interest rate is 10 percent per year. According to the Hotelling Principle the price of oil this year is
A) $80 per barrel. B) $88 per barrel. C) $96 per barrel. D) None of the above answer is correct.
Which of the following markets would reach long-run equilibrium fastest?
A) online retail B) auto dealers C) oil extraction D) World Series tickets
Depreciation refers to: a. the value of leisure goods
b. changes in exchange rates. c. income that we earn but do not receive. d. investment undertaken merely to replace worn-out capital. e. the effects of government subsidy programs.
The greatest number of recent immigrants to the U.S. come from Mexico because of:
a. political insecurity in Mexico. b. religious insecurity in Mexico. c. proximity and wage differentials. d. racial discrimination in Mexico. e. greater social security in the United States.