Regarding the Overall Effect of Negative Interest Rates on the Economy

question 40

Multiple Choice

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.

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