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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