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Business, 26.12.2020 22:30 arpolin15

An economy at the zero lower bound can enter a deflationary spiral because: a) lower inflation expectations cause the IS curve to shift further to the left. b) lower inflation expectations cause the real interest rate to rise and output to fall further. c) as output falls, the Fed is forced to raise the nominal interest rate. d) as inflation falls, the Fed is forced to raise the nominal interest rate. e) none of the above

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