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    A Situation Where Expansionary Monetary Policies Are Ineffective Because Nominal
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A Situation Where Expansionary Monetary Policies Are Ineffective Because Nominal

Question 121

Question 121

Multiple Choice

A situation where expansionary monetary policies are ineffective because nominal interest rates are already low is called:


A) a liquidity drop.
B) a liquidity trap.
C) a illiquidity drop.
D) an illiquidity trap.

Correct Answer:

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