A Liquidity Trap Occurs When ________

question 87

Multiple Choice

A liquidity trap occurs when ________.

• A) the central bank cannot lower policy rates below zero
• B) government spending crowds out private investment
• C) planned investment equals zero
• D) money is no longer considered a liquid asset

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Definitions:

Implanon

A brand of contraceptive implant that releases a hormone to prevent pregnancy, inserted under the skin of a woman's upper arm.

Sexually Transmitted Infections

Infections typically passed from one person to another through sexual contact, including viruses, bacteria, and parasites.

Fem Cap

is a type of cervical cap used as a contraceptive device, designed to fit over the cervix to block sperm from entering the uterus.

Diaphragm

A barrier method of contraception that is a dome-shaped cup inserted into the vagina to cover the cervix and prevent sperm from entering the uterus.