Multiple Choice
A liquidity trap is...
A) A strategy that an investor would use to gain his competitor's liquid assets.
B) A situation where the liquidity in the market created by low interest rates does not stimulate the economy to full employment.
C) A strategy that banks use to trap house owners to pay their mortgages.
D) A situation when liquid assets become illiquid because they are unable to be sold or bought.
Correct Answer:
Verified
Correct Answer:
Verified
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