Explain the Liquidity Trap

question 271

Essay

Explain the liquidity trap.

---

Definitions:

Appellate Jurisdiction

The authority of a higher court to review and amend the decision of a lower court.

De Novo Review

De Novo Review is a form of appeal in which the reviewing court considers the matter anew, as if it had not been heard before and no decision previously made.

Clearly Erroneous

A standard of review for an obvious mistake in judgment or procedure.

Cross-examination

A stage in a legal trial where one party questions a witness called by the opposing party to challenge the testimony given.