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The nominal interest rate cannot fall below zero because

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The nominal interest rate cannot fall below zero because

The nominal interest rate cannot fall below zero because
A) central banks are engaged in interest rate targeting.
B) inflation is generally too high.
C) inflation is generally too low.
D) financial markets cannot allow for arbitrage opportunities.
E) financial markets do allow for arbitrage opportunities.

Textbook

Macroeconomics, Canadian Edition

Edition: 5^th

Author: Williamson

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