If a Liquidity Trap Exists,people Are Likely to Be Thinking

question 117

Multiple Choice

If a liquidity trap exists,people are likely to be thinking that

• A) bond prices are so low that they have nowhere to go but up; given this,now is a good time to be holding bonds.
• B) bond prices are so high that they have nowhere to go but down; given this,it is better not to be holding bonds.
• C) bond prices will soon rise so it is better to get out of bonds now.
• D) interest rates will soon fall.

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Definitions:

Drug Administration

The method by which a drug is taken into the body, typically including oral, intravenous, topical, and inhalation routes among others.

Kilogram (kg)

A unit of mass in the International System of Units (SI), equal to 1000 grams or approximately 2.20462 pounds.

Surgery

A branch of medicine that involves the treatment of injuries or disorders by cutting, removing, or altering parts of the body to remove diseased tissue or repair damaged areas.

Nomogram

A form of line chart showing scales for the variables involved in a particular formula in such a way that corresponding values for each variable lie in a straight line intersecting all the scales.