Central bank reduced real interest rates to zero percent

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In the 1990s and early 2000s, Japan's central bank reduced real interest rates to zero percent, but investment spending did not respond enough to bring the economy out of recession. Japan's experience is an illustration of: Athe crowding-out effect. Bthe liquidity trap. Cthe Taylor rule. D"pulling on a string."

Reference no: EM131163788

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