One criticism of the Fed's policy of forward guidance during the recession of 2007-2009 is that it contributed to a prolonged period of abnormally low interest rates,leading to speculative bubbles in stocks or other financial assets as investors

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The criticism is that the Fed's forward guidance led to prolonged low-interest rates, which encouraged investors to borrow at these low rates to invest in financial assets, leading to speculative bubbles. This is consistent with choice B, where investors borrowed at the low rates to buy assets. The other choices are not consistent with the criticism.

One Criticism of the Fed's Policy of Forward Guidance During