Inflation frees policy makers from
A)the 2.5% interest rate lower bound
B)the 2.5% growth rate bound
C)the zero interest rate lower bound
D)the zero interest rate upper bound.

Question

Quizplus · Accepted Answer

Inflation can help policy makers avoid the zero interest rate lower bound, which is a situation where nominal interest rates are at or near zero, limiting the central bank's ability to stimulate the economy through traditional monetary policy.

Inflation Frees Policy Makers from