Multiple Choice
Which of the following statements is false?
A) A liquidity trap means that at very low interest rates people simply hold their money.
B) Since the late 1990s,Japan has been caught in a liquidity trap.
C) The liquidity trap relates to the precautionary demand for money.
D) Keynes cited the liquidity trap as one of the consequences of the speculative demand for money.
Correct Answer:
Verified
Correct Answer:
Verified
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