How does the policy rate hitting a floor of zero lead to an upward-sloping aggregate demand curve?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0133836790

11th edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 03, 2017 04:09 AM

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How does the policy rate hitting a floor of zero lead to an upward-sloping aggregate demand curve?

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When the zero lower bound is hit a lower inflation rate leads to a high...View the full answer

The Economics of Money Banking and Financial Markets

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