Zero lower bound refers to:
A)a bank with zero excess reserves.
B)a situation where there is little to no inflation.
C)a level below which the Fed cannot further reduce short-term interest rates.
D)the rate that the Federal Reserve is currently paying on bank reserves.

Question

Quizplus · Accepted Answer

Zero lower bound refers to a level, close to zero, below which the Fed cannot further reduce short-term interest rates.

Zero Lower Bound Refers To