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Conventional monetary policy would become more expansionary when interest rates fell to the floor of the effective lower bound, i.e., the effective lower bound on

Conventional monetary policy would become more expansionary when interest rates fell to the floor of the effective lower bound, i.e., the effective lower bound on the policy rate would be less binding with a

A. lower inflation target.

B. higher federal funds rate.

C. lower federal funds rate.

D. higher inflation target.

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