One of the limiting factors for using monetary policy is:

Name: One of the limiting factors for using monetary policy is:
Brand: Quizplus
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Question

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When interest rates reach zero, it becomes difficult for central banks to lower them further as people would simply hoard the money instead of investing or spending it. This is known as the lower nominal-interest-rate bound, and once it's reached, it can limit the effectiveness of monetary policy. The other options are not directly limiting factors for using monetary policy.

One of the Limiting Factors for Using Monetary Policy Is