The Nominal Interest Rate Cannot Fall Below Zero Because

question 38

Multiple Choice

The nominal interest rate cannot fall below zero because

• A)inflation is generally too low.
• B)financial markets do allow for arbitrage opportunities.
• C)inflation is generally too high.
• D)central banks are engaged in interest rate targeting.
• E)financial markets cannot allow for arbitrage opportunities.

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A period when a system, service, or machine is not operative or cannot be used, often for maintenance or due to a malfunction.

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