Liquidity Trap: Definition, Causes, and Examples
Por um escritor misterioso
Last updated 06 junho 2024
A liquidity trap can occur when consumers and investors hoard cash and refuse to spend even when economic policymakers cut interest rates to stimulate economic growth.
Liquidity Trap: Definition, Causes, and Examples
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Liquidity Trap: Definition, Causes, and Examples
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1. If the economy is currently in a liquidity trap, an increase in the money supply would shift the MS curve _ and interest rates would _. A. right; decrease B. right;
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The liquidity trap: A. Refers to the vertical portion of the money demand curve. B. Refers to the possibility that interest rates may not respond to changes in the money supply. C.
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