What are two conflicting issues that the European central banks that experimented with negative interest rates found that they eventually had to balance?
A)a desire to increase lending, but a smaller pool of excess reserve
B)reducing unemployment, while also reducing inflation
C)lower level of spending and more savings
D)domestic products versus imported goods

Question

Quizplus · Accepted Answer

Negative interest rates reduce the incentive for banks to hold excess reserves, as they are penalized for doing so. This can lead to a smaller pool of excess reserves, which can make it more difficult for the central bank to increase lending.

What Are Two Conflicting Issues That the European Central Banks