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  3. Study Set
    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    A Situation in Which the Fed's Target Interest Rate Has
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A Situation in Which the Fed's Target Interest Rate Has

Question 107

Question 107

Multiple Choice

A situation in which the Fed's target interest rate has fallen as far as it can fall is sometimes described as a


A) liquidity preference.
B) liquidity trap.
C) open-market trap.
D) interest-rate contraction.

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