Governments imposing negative nominal interest rates are attempting to
A)discourage the use of banks.
B)compete with private banks in the lending market.
C)discourage consumption and encourage saving.
D)encourage consumption by discouraging saving.

Question

Quizplus · Accepted Answer

Negative nominal interest rates are intended to encourage spending and investment by making saving less attractive, as people are charged for keeping money in the bank.

Governments Imposing Negative Nominal Interest Rates Are Attempting to