An economy is in a deep recession with high unemployment and stagnant growth. The central bank has lowered its primary policy interest rate to 0%, but businesses are still not borrowing to invest and households are delaying major purchases. Which statement best analyzes the situation and identifies what is likely needed to stimulate spending?
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An economy is in a deep recession with high unemployment and stagnant growth. The central bank has lowered its primary policy interest rate to 0%, but businesses are still not borrowing to invest and households are delaying major purchases. Which statement best analyzes the situation and identifies what is likely needed to stimulate spending?
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