Multiple Choice
A liquidity trap refers to a situation in which:
A) taking away liquidity from the banks has a major positive effect on lending.
B) adding liquidity to banks has major positive effects on lending.
C) adding liquidity to banks has little or no positive effects on lending.
D) taking away liquidity to banks has a major negative effect on lending.
Correct Answer:
Verified
Correct Answer:
Verified
Q10: An increase in nominal GDP increases the
Q229: By early 2008 it became evident that
Q230: An important routine function of the Bank
Q231: An expansionary monetary policy is designed to
Q232: The job of the monetary authorities in
Q233: Which of the following best describes what
Q234: Monetary policy is:<br>A)faster than fiscal policy.<br>B)slower than
Q235: The interest rate at which the Bank
Q236: If the Bank of Canada buys government
Q239: The price of a bond with no