Economists Who Are Skeptical About the Relevance of "Liquidity Traps

Multiple Choice

Economists who are skeptical about the relevance of "liquidity traps" argue that ss

A) a central bank continues to have tools to stimulate the economy, even after its interest rate target hits its lower bound of zero.
B) a central bank continues to have the option of committing itself to future monetary contraction, even after its interest rate target hits its lower bound of zero.
C) a central bank can greatly reduce the likelihood of a liquidity trap by setting the target rate of inflation at zero.
D) while the concept of a liquidity trap is theoretically possible, nothing resembling a liquidity trap ever has been observed in the real world.