Evidence Suggests That a Liquidity Trap Is Possible When

question 85

Multiple Choice

Evidence suggests that a liquidity trap is possible when

• A)real interest rates are at zero.
• B)real interest rates are at or just above zero.
• C)nominal interest rates are at zero.
• D)nominal interest rates are at or just above zero.

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Definitions:

Paracrine

This term describes a type of cell signaling in which the target cell is close to the signal-releasing cell.

Neurotransmitter

Any specific chemical agent released by a presynaptic cell on excitation that crosses the synaptic cleft and stimulates or inhibits the postsynaptic cell.

Autocrine

A mode of hormone action where a cell targets itself, releasing and responding to its own secreted molecules.

Lipid-Soluble

Lipid-soluble refers to molecules that can dissolve in fats and oils, allowing them to easily pass through cell membranes that are made of lipid layers.