In the recent financial and economic crises, the economy fell into a so-called liquidity trap, which means that:
A. Banks did not have enough reserves to continue lending to banks
B. The Fed injected reserves into the banking system, but the interest rates remained high
C. Firms did not want to borrow from banks because they had little need for extra liquidity
D. Banks held on to excess reserves and people chose to pay off loans rather than spend
D. Banks held on to excess reserves and people chose to pay off loans rather than spend
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If the value of a dollar rises in terms of yen, the dollar has ________ and the yen has ________
A) appreciated; appreciated B) appreciated; depreciated C) depreciated; appreciated D) depreciated; depreciated
Since 1960, South Korea and Singapore enjoyed an average per-capita growth rates ________ the average industrialized world
A) far below B) far above C) about the same D) slightly below E) slightly above