One of the limiting factors for using monetary policy is:
A. the real interest rate cannot fall below zero.
B. central banks are limited in their ability to make loans.
C. the central banks are limited in their ability to print money.
D. there is a lower nominal-interest-rate bound of zero.
Answer: D
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If there are an estimated 20,000 barrels of unknown reserves of oil, annual consumption of oil is 800 barrels, and it is estimated that the supply of oil will be depleted in 50 years, how many barrels of known reserves of oil are there estimated to
be, all else equal? A) 1,250 B) 16,000 C) 20,000 D) 320,000
Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse. Why would overfishing occur in this common market?
A) Fishing occurs until marginal cost per boat equals marginal social benefit which is inefficient. B) Fishing occurs until marginal social cost per boat equals marginal social benefit which is inefficient. C) Fishing occurs until marginal cost per boat equals marginal benefit which is inefficient. D) Fishing occurs until marginal social cost per boat equals marginal cost which is inefficient.
Identified departures from perfect rationality include:
A. incoherent choices. B. bias towards the status quo. C. anchoring. D. All of these are identified departures from perfect rationality.
Monetarists argue that the long-run Phillips curve is negatively sloped
a. True b. False Indicate whether the statement is true or false