Which of the following is essential to a strategy of deep finance?
A) avoiding a government budget deficit
B) maintaining very high real interest rates
C) avoiding strongly negative real interest rates
D) all of the above

Question

Quizplus · Accepted Answer

Deep finance requires avoiding strongly negative real interest rates. This is because negative real interest rates lead to low savings and low investment, which ultimately hinders economic growth. Avoiding a government budget deficit and maintaining high real interest rates may be beneficial, but they are not essential components of a strategy of deep finance.

Which of the Following Is Essential to a Strategy of Deep