The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as

A) the Taylor rule.
B) a liquidity trap.
C) a zero-sum game.
D) an interest rate panic.

Answer: B

Economics

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When a nation has a comparative advantage in the production of a particular good

A) the nation tends to avoid specialization. B) the comparative advantage encourages self-sufficiency. C) the opportunity cost of producing that good is higher than that of other goods. D) the nation can gain from trade.

Economics

An economic boom in one country usually causes a recession in other countries.

Answer the following statement true (T) or false (F)

Economics