Problem
1. Why is it a good idea for the central bank to engage in interest rate targeting?
2. List five monetary policy rules.
3. What happens when monetary policy is subject to the zero lower bound? Is there anything that the central bank can do in such circumstances to affect prices and real economic activity?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.