The zero-lower-bound problem: OA. creates a negative shock to the economy. B. occurs because people can always earn more from holding bonds than holding cash. OC. is responsible for the recession of 2007-2009. OD. implies that nominal interest rates can be zero.

The zero-lower-bound problem: A. creates a negative shock to the economy. B. occurs because people can always earn more from holding bonds than holding cash... C. is responsible for the recession of 2007-2009. OD. implies that nominal interest rates can be zero.