The Existence of a Liquidity Trap Implies That

question 52

Multiple Choice

The existence of a liquidity trap implies that

• A) a decrease in the interest rate might not increase investment spending.
• B) an increase in the demand for money will be followed by an equal increase in the supply of money.
• C) an increase in the supply of money may not lower interest rates.
• D) a and c

---

Definitions:

Repeat Purchases

The action by customers of buying a product or service again, often indicating satisfaction and loyalty to a brand.

Need-Satisfaction

A sales approach focusing on identifying and meeting the explicit needs of the customer with suitable products or services.

Highly Structured

Describes systems or processes that are organized in a clear, well-defined manner, often with strict rules or arrangements.

Memorized Sales Presentation

A sales presentation that is thoroughly learned by heart, allowing the salesperson to deliver it from memory with confidence and precision.