Regarding the overall effect of negative interest rates on the economy, economists
A)are in general agreement that the overall effect is negative, because economic activity will slow down.
B)are in general agreement that the overall effect is positive, because economic activity will be stimulated.
C)are still debating, awaiting the results of the real-world "experiments" in several countries.
D)believe that negative interest rates simply cannot happen in reality.

Question

Quizplus · Accepted Answer

Economists are still debating the overall effect of negative interest rates, as they are a relatively new and unconventional monetary policy tool, and their long-term impacts are not yet fully understood.

Regarding the Overall Effect of Negative Interest Rates on the Economy