When a Liquidity Trap Situation Exists, We Know That

Multiple Choice

When a liquidity trap situation exists, we know that:

A) expansionary monetary policy will be deflationary.
B) fiscal policy will have no effect on the demand for goods.
C) an open market operation will have no effect on the monetary base.
D) an open market operation will have no effect on the interest rate.
E) an open market operation will have no effect on the supply of money.