Why are official inflation targets not set at zero?
Explain how changes in interest rates affect aggregate demand.
What is the likely time lag between a change in interest rates and a change in the price level?
Why is it generally considered beneficial for interest rates to be changed by a small amount at a time?
What is the liquidity trap?
What is Goodhart’s Law?
Do changes in interest rates primarily affect the supply of money or the demand for money? Explain your answer.