The situation in which short-term interest rates are pushed to ...

[c0205847]

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.

Question 2

The expansionary monetary and fiscal policies of the 1960s resulted in
 
  A) low inflation rates and low rates of unemployment.
  B) high inflation rates and high rates of unemployment.
  C) high inflation rates and low rates of unemployment.
  D) low inflation rates and high rates of unemployment.

[blakeserpa]

Answer to Question 1

D

Answer to Question 2

C