Social Studies
Social Studies, 03.12.2019 07:31, 23rwilliamson

Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound? a. the self-correcting mechanism stops working because the rising inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower bound, and this decrease depresses planned spending and further widens the output gap. b. the self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower bound, and this decrease depresses saving and investment and therefore further widens the output gap. c. the self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower bound, and this increase depresses planned spending and further widens the output gap. d. the self-correcting mechanism stops working because the rising inflation produced by a positive output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower bound, and this decrease enhances planned spending and further widens the output gap.

answer
Answers: 1

Other questions on the subject: Social Studies

image
Social Studies, 22.06.2019 01:30, sweatsierra
The united states constitution gives the the power to regulate interstate commerce.
Answers: 1
image
Social Studies, 22.06.2019 09:30, ldelgado97
What attorney successfully defended zenger during trail
Answers: 1
image
Social Studies, 22.06.2019 10:30, avanelson01
Congress checks on the power of the presidency by overriding a presidential reversal or veto. debating the bill in both of the houses. making laws without presidential review. sending the bill back to several committees
Answers: 1
image
Social Studies, 22.06.2019 10:40, joslynndiggs
Which type of antidepressant is matched with the correct neurotransmitter action? tricyclicsincrease activity of neurotransmitter gaba ssrisprevent neurotransmitter breakdown ssrisinhibit reuptake of serotonin mao inhibitorsincrease norepinephrine
Answers: 2
Do you know the correct answer?
Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound?...

Questions in other subjects:

Konu
English, 05.12.2020 14:00
Konu
English, 05.12.2020 14:00
Konu
Mathematics, 05.12.2020 14:00
Konu
Mathematics, 05.12.2020 14:00
Konu
World Languages, 05.12.2020 14:00