MCQOPTIONS
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| 1. |
The liquidity trap occurs when the demand for money ? |
| A. | Is perfectly interest elastic |
| B. | Is perfectly interest inelastic |
| C. | Means that an increase in money supply leads to a fall in the interest rate |
| D. | Means that an increases in the money supply leads to an increases in the interest rate |
| Answer» B. Is perfectly interest inelastic | |