Zombie Companies Haunt the Economy

The video discusses the Federal Reserve's commitment to maintaining a 2% inflation target and the potential risks of economic overheating due to stimulus measures and vaccines. It highlights the issue of 'zombie companies' that survive on low interest rates without generating enough income to cover their debts. These companies, including well-known brands, consume resources that could be used more productively, affecting innovation and economic growth.

What is the Federal Reserve's target for inflation expectations?

• 3%

• 1%

• 4%

• 2%

What is a potential consequence of the stimulus package as discussed in the video?

• Economic overheating

• Deflation

• Decreased consumer spending

• Increased unemployment

What defines a 'zombie company'?

• A company with high profits

• A company that cannot pay interest on its debt

• A company with a high credit rating

• A company that is rapidly expanding

Which of the following companies was mentioned as a 'zombie company'?

• Apple

• Google

• Macy's

• Tesla

What is one of the negative impacts of zombie companies on the economy?

• They increase innovation

• They consume resources that could be used more productively

• They boost GDP significantly

• They reduce unemployment