The Fed’s response to the zero lower bound problem was quantitative easing (or “QE”), where the Fed buys large amounts of bonds in order to 1) lower the interest rates. O 2) increase banks’ reserves. 3) lower bond prices. O 4) reduce money supply.

“ The Fed’s response to the zero lower bound problem was quantitative easing (or “QE”), where the Fed buys large amounts of bonds in order to 1) lower the interest rates. O 2) increase banks’ reserves. 3) lower bond prices. O 4) reduce money supply. ”

“ The Fed’s response to the zero lower bound problem was quantitative easing (or “QE”), where the Fed buys large amounts of bonds in order to 1) lower the interest rates. O 2) increase banks’ reserves. 3) lower bond prices. O 4) reduce money supply. ”