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    Exam 17: Crises and Consequences
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    When Borrowers Don't Respond to Short-Term Interest Rates of Zero
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When Borrowers Don't Respond to Short-Term Interest Rates of Zero

Question 167

Question 167

Multiple Choice

When borrowers don't respond to short-term interest rates of zero, the economy is in:


A) a liquidity trap.
B) hyperinflation.
C) an asset bubble.
D) maturity transformation.

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