The ZIRP (zero interest rate policy) of the Fed led to the so-called zero lower bound problem, which refers to the problem of
A)having a very low level of employment with zero new jobs created.
B)huge budget deficits leaving the government no more ability to spend.
C)interest rates that can't go any lower, i.e., they cannot be driven down below zero.
D)zero real-GDP growth due to very weak aggregate demand.

Question

Quizplus · Accepted Answer

The zero lower bound problem occurs when interest rates are at or near zero, limiting the central bank's ability to further stimulate the economy by lowering rates.

The ZIRP (Zero Interest Rate Policy) of the Fed Led