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:

Verified
Correct Answer:
Verified
Related Questions
Q89: Tobin's model of the speculative demand for
Q90: Keynes's model of the demand for money
Q91: Keynes argued that when interest rates were
Q92: The view that velocity is constant in
Q93: In the liquidity trap,the money demand curve<br>A)is
Q95: Conventional money demand functions tended to _
Q96: The equation of exchange is<br>A)M × P
Q97: If the government finances its spending by
Q98: The theory of portfolio choice indicates that
Q99: Keynes's liquidity preference theory indicates that the