When the Economy Is in a Liquidity Trap, Consumers and Businesses

question 204

True/False

When the economy is in a liquidity trap, consumers and businesses aren't willing to borrow and spend even though interest rates may be zero.

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Definitions:

Contractual Duty

An obligation agreed upon in a contract that one party must perform for the other.

Revocation

The official cancellation of a decree, decision, or promise.

Rejection

Refusal to accept, approve, or support something.

Obligations

Legal or moral responsibilities and duties that an entity is required to fulfill.