Keynes Defined the Liquidity Trap as a Situation in Which,once

question 265

True/False

Keynes defined the liquidity trap as a situation in which,once interest rates sink low,individuals spend their money rather than holding onto it.

---

Definitions:

Introverted Feeling

A cognitive function characterized by deep, introspective emotions and decisions based primarily on personal values and feelings.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.

Libido

Within the framework of psychoanalytic theory, the force of the sexual urge is considered a part of the life instinct.

Psyche

The human soul, mind, or spirit, often used in psychology to refer to the totality of the human mind, conscious, and unconscious.