The fact that investors can always hold cash creates:
A. negative nominal interest rates.
B. a problem for monetary policymakers when the short-term interest rates approach zero.
C. an opportunity for the U.S. treasury to issue bonds that actually have negative nominal interest rates.
D. an upward bound on nominal interest rates.
Answer: B
You might also like to view...
Ceteris paribus is the same as rise / run
Indicate whether the statement is true or false
The long-run response to an increase in the growth rate of the money supply is shown by shifting
a. the short-run and long-run Phillips curves left. b. the short-run and long-run Phillips curves right. c. only the short-run Phillips curve left. d. only the short-run Phillips curve right.
If labor supply of unskilled workers is perfectly inelastic, then
A. the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market. B. firms face an increasing marginal cost of hiring unskilled labor. C. firms face a horizontal value of marginal product of employment curve. D. workers will supply more hours of labor to the market when wages increase. E. the labor supply curve of unskilled workers is horizontal at the market-clearing wage.
Government programs that protect people experiencing unfavorable economic conditions
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism