Author Question: The zero-lower-bound problem eliminates the ability of the central bank to use which of the ... (Read 53 times)

yoroshambo · **on:** Jun 30, 2018

The zero-lower-bound problem eliminates the ability of the central bank to use which of the following in implementing policy?

A) open market operations
B) discount lending
C) the federal funds rate
D) the required reserve ratio

Question 2

The household budget constraint may have a kink because

A) there is uncertainty.
B) households prefer diversity.
C) households may substitute consumption for leisure, or the reverse.
D) leisure is limited by the number of available hours.