According to Figure 15.5, the liquidity trap occurs at an interest rate of
A. 8 percent only.
B. 2 percent, 4 percent, 6 percent, and 8 percent.
C. 2 percent and 4 percent.
D. 2 percent only.
Answer: D
Economics
You might also like to view...
In a liquidity trap, expansionary monetary policy has __________ effect on output, and expansionary fiscal policy has __________ effect on output
A) no; no B) no; a strong C) a strong; no D) a strong; strong
Economics
Which the following is NOT an exogenous factor affecting economic growth that countries caught in a "poverty trap" might utilize to encourage economic growth?
A) human capital B) political capital C) infrastructure D) geographical location
Economics