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According to the Concept of the Liquidity Trap

Question 11

Multiple Choice

According to the concept of the liquidity trap,


A) at very low interest rates people would put their money in the bank.
B) at very low interest rates people would simply hold their money.
C) at very high interest rates people would simply hold their money.
D) people will lend out their money no matter what the interest rate happens to be.

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