Recall Application 1, "Avoiding a Liquidity Trap," to Answer the Following

Multiple Choice

Recall Application 1, "Avoiding a Liquidity Trap," to answer the following questions:
-Which of the following is the warning sign that the economy was facing a looming liquidity trap?

A) The short- term interest rates were already at 0.5 percent.
B) The 30- year mortgage rate was approaching 5 percent.
C) The US national debt was approaching $10 trillion.
D) The bank reserves were approaching zero percent.