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Chako Chako
wrote...
Posts: 2948
8 years ago
If a country's nominal interest rate is zero, then
A) the country's economy is in a liquidity trap.
B) exchange rates with other countries are likely to increase.
C) monetary policy is likely to be very effective in stimulating the economy.
D) exchange rates with other countries are likely to decline.
E) the country's economy has achieved monetary equilibrium.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 153 times
3 Replies

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Replies
wrote...
7 years ago
A
Chako Author
wrote...
7 years ago
Correct!
wrote...
7 years ago
Good luck
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