In the Case of Zero Inflation, During a Recession a Central

Multiple Choice

In the case of zero inflation, during a recession a central bank would:

A) have little leeway to further reduce interest rates in order to stimulate the economy.
B) not be able to engage in any type of policy to stimulate the economy.
C) spend more money in order to stimulate the economy.
D) have to print more money in order to stimulate the economy.