When Economists State That There Is a Zero Bound on Nominal

question 130

Multiple Choice

When economists state that there is a zero bound on nominal interest rates, they mean that:

• A)the real interest rate cannot go below zero.
• B)the nominal interest rate cannot go below zero.
• C)the real interest rate can very well be negative.
• D)the nominal interest rate can always go below zero.

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Definitions:

Home-Country Nationals

Individuals who are citizens of the country where a multinational company originates, as opposed to host-country nationals or third-country nationals.

International Expansion

The process of a business extending its operations and market presence beyond its national borders.

Women Expatriates

Female employees who are sent by their companies to work abroad, often facing unique challenges and opportunities.

Visible

Easily seen or noticed; capable of being perceived by the senses or mind.