A Situation Where Expansionary Monetary Policies Are Ineffective Because Nominal

question 121

Multiple Choice

A situation where expansionary monetary policies are ineffective because nominal interest rates are already low is called:

• A) a liquidity drop.
• B) a liquidity trap.
• C) a illiquidity drop.
• D) an illiquidity trap.

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An entity that operates for a collective, public, or social benefit, rather than to make profit for owners or shareholders.

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