The liquidity trap is the
A) vertical portion of the demand curve for money.
B) horizontal portion of the demand curve for money.
C) vertical portion of the supply curve of money.
D) horizontal portion of the supply curve of money.
E) vertical portion of the demand curve for investment.
B
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All of the following are possible private-sector adjustments to an increase in the government's budget deficit except
A) increasing private savings. B) decreasing investment. C) decreasing expenditures on transfer programs. D) increasing the trade deficit by increasing imports and/or decreasing exports.
Which of the following would cause a movement up (or leftward) along the demand curve for European autos in the United States?
a. an increase in the price of American autos b. a decrease in the price of American autos c. an increase in income in the United States d. an increase in the price of European cars