B. The Zero Lower Bound Consider an open economy with a flexible exchange rate. Suppose that this economy has a zero nominal interest rate with output below the natural level. Explain why traditional monetary policy is ineffective in these circumstances. Suppose no policy measures are attempted. Explain how the economy will adjust over time. Will it tend to return to the natural level of output? Discuss nontraditional monetary policies that may be available to a central bank at the zero lower bound and explain how they might affect the economy. d. Discuss how the policies in part [c] might affect the exchange rate