When there is deflation:
A) the central bank cannot push the real interest rate to zero.
B) it has no effect on the output gap.
C) it has no effect on the unemployment rate.
D) there is a decline in real money.
E) nominal interest rates are negative.

Question

Quizplus · Accepted Answer

The Answer of When there is deflation:
A) the central bank cannot push the real interest rate to zero.
B) it has no effect on the output gap.
C) it has no effect on the unemployment rate.
D) there is a decline in real money.
E) nominal interest rates are negative.

When There Is Deflation