Recall the Application About Fed Chairman Ben Bernanke's Views on How

Multiple Choice

Recall the Application about Fed Chairman Ben Bernanke's views on how to fight a liquidity trap to answer the following question(s) .
-Recall the Application. Before becoming Fed Chairman, Ben Bernanke argued that the Bank of Japan should have committed to increasing inflation as a response to the Japanese liquidity trap. Doing this would allow for

A) real interest rates to be negative.
B) real interest rates to increase even if nominal rates decreased.
C) nominal interest rates to be negative.
D) both nominal and real interest rates to decrease and become negative.