Multiple Choice
What are options for monetary easing using interest rate policy instruments when the rate has hit the zero lower bound?
A) At that point, interest rate policy cannot be used.
B) Monetary easing can still occur whenever interest rates are greater than zero at the retail level.
C) The central bank can increase the money supply, and interest rates can be less than zero.
D) Borrowing can be stimulated in ways other than lower rates of interest.
Correct Answer:
Verified
Correct Answer:
Verified
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