At the End of 2008, the Federal Funds Rate in the United

Multiple Choice

At the end of 2008, the federal funds rate in the United States was close to zero. Which of the
Following is a major concern associated with such a low rate?

A) That traditional monetary policy will have no impact on the economy.
B) Such a low rate spurs excessive consumption and investment spending which may lead to inflation.
C) Such a low rate spurs excessive consumption and investment spending which may lead to deflation.
D) Economic agents might be unwilling to borrow in anticipation of even lower interest rates.