In 2009, Professor Mankiw wrote an article in the New York Times suggesting negative interest rates. The logic is that consumers would spend more money. The additional spending would:
A) increase aggregate demand and act as a boost to the economy.
B) decrease aggregate demand and act as a boost to the economy.
C) increase aggregate demand and slow down the economy.
D) decrease aggregate demand and slow down the economy.

Question

Quizplus · Accepted Answer

Negative interest rates would encourage consumers to spend rather than save, therefore increasing demand for goods and services. This boost in demand would stimulate economic growth and potentially lead to a decrease in unemployment.

In 2009, Professor Mankiw Wrote an Article in the New