Question: Yields on bonds must be above the effective lower bound because: a. investors can always hold cash. b. demand deposits cannot have negative real returns.
Yields on bonds must be above the effective lower bound because:
| a. | investors can always hold cash. | |
| b. | demand deposits cannot have negative real returns. | |
| c. | positive yields are guaranteed by the U.S. Treasury. | |
| d. | the technology of banking cannot deal with negative yields. |
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