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    Exam 19: Quantity Theory, inflation and the Demand for Money
  5. Question
    In the Liquidity Trap a Small Change in Interest Rates
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In the Liquidity Trap a Small Change in Interest Rates

Question 94

Question 94

Multiple Choice

In the liquidity trap a small change in interest rates produces ________ change in the quantity of money demanded.


A) a small
B) no
C) a proportionate
D) a very large

Correct Answer:

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