In the 1990s and Early 2000s, Japan's Central Bank Reduced

Multiple Choice

In the 1990s and early 2000s, Japan's central bank reduced real interest rates to zero percent, but investment spending did not respond enough to bring the economy out of recession. Japan's experience is an illustration of

A) the crowding-out effect.
B) "pulling on a string."
C) the Taylor rule.
D) the liquidity trap.