Which of the Following Is NOT a Potential Tool a Central

question 9

Multiple Choice

Which of the following is NOT a potential tool a central bank would have if the zero lower bound has been reached?

• A) raising inflation expectations
• B) quantitative easing
• C) increasing the target inflation rate
• D) increasing tax rates

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Definitions:

Negative Thoughts

Refers to pessimistic or gloomy thoughts that can affect one's mood, behavior, and overall perception of life.

Direct Approach

A communication method that involves stating the main point or objective clearly and upfront, without circumlocution.

Positive Response

An affirmative or favorable reply or reaction to a situation, proposal, or stimulus.

Neutral Response

A reaction that is neither positive nor negative, often reflecting indifference or lack of preference.