Question: please select all possible options below, appreciate it Suppose that the natural rate of interest has gone down and that the central bank is constrained

please select all possible options below, appreciate it

please select all possible options below, appreciate it Suppose that the natural

Suppose that the natural rate of interest has gone down and that the central bank is constrained by the zero lower bound, with inflation below the central bank's target and a positive output gap Further, suppose that if government spending goes up permanently, that higher future government spending will increase anticipated future inflation (by a Phillips curve effect in the future). Assume that the central bank has a quadratic loss function, and assume that the marginal propensity to consume is a constant that does not depend on the real interest rate. In the basic New Keynesian model, assuming that the central bank is still constrained by the zero lower bound after a change in government spending and the nominal interest rate stays at zero, the total government expenditure multiplier of government spending on output in this situation could be (Select all that apply.) A. 0. B. any value between 0 and 0.5 (exclusively) C. 0.5 D. greater than 1. E. any value between 0.5 and 1 (exclusively) F. less than 0. G

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