Recently, the discount rate has reached what is known as the zero lower bound.

Question

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The zero lower bound refers to the situation where the central bank's policy rate (such as the discount rate) has been lowered to near 0% to stimulate economic activity, indicating that it cannot be reduced further to encourage borrowing and spending. This has occurred in several major economies in response to financial crises and economic downturns.

Recently, the Discount Rate Has Reached What Is Known as the Zero