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    Exam 24: Monetary Policy Theory
  5. Question
    A Liquidity Trap Occurs When ________
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A Liquidity Trap Occurs When ________

Question 87

Question 87

Multiple Choice

A liquidity trap occurs when ________.


A) the central bank cannot lower policy rates below zero
B) government spending crowds out private investment
C) planned investment equals zero
D) money is no longer considered a liquid asset

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