Greenspan: Negative Rates Warp Investment Behavior

Greenspan: Negative Rates Warp Investment Behavior

Assessment

Interactive Video

Business

University

Hard

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The video discusses the economic implications of negative interest rates, highlighting how they distort investment patterns and affect corporate behavior. It raises concerns about productivity and the challenges of government policies aimed at boosting investment. The discussion suggests that low interest rates lead to misallocation of capital and economic uncertainty.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What signals are the markets currently sending about economic health?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Why might government policies aimed at spurring investment in the U.S. fail?

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