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valputin valputin
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8 years ago
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 the policy rate.
D) lower both the short-term real interest rate and the financial frictions.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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#2
8 years ago
This is great!
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
@valputin,

Happy to help Slight Smile
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