Solved

Liquidity Trap Is a Situation When

Question 4

Multiple Choice

Liquidity trap is a situation when,


A) all potential investors expect the rate of interest to rise in future
B) all potential investors expect the rate of interest to fall in future
C) natural rate of interest is above the critical rate of interest
D) demand for money for speculative purpose is interest inelastic

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions