The real interest rate for investments reflects not only the short-term real interest rate set by the central bank, but also the financial frictions
When the policy rate has hit the floor of zero, to stimulate the economy at given inflation rates, policymakers can A) lower the financial frictions.
B) lower the short-term real interest rate.
C) lower both the short-term real interest rate and the financial frictions.
D) lower the policy rate.
A
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A country's financial account includes which of the following?
a. net investment income b. net transfers c. exports d. imports e. sales of assets to other countries
What would best explain why the equilibrium price of pink salmon decreased and the equilibrium quantity increased?
A. The increase in demand was greater than the decrease in supply B. The decrease in demand was greater than the decrease in supply C. The increase in supply was greater than the decrease in demand D. The decrease in supply was greater than the increase in demand