Which of the Following Is False About a Liquidity Trap

question 65

Multiple Choice

Which of the following is false about a liquidity trap situation:

• A)​Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities.
• B)​The Fed can lower both short term and long term interest rates by using quantitative easing.
• C)​The Fed cannot easily reduce the fed funds interest rate.
• D)​Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates.

Identify the characteristics of implied contracts through the conduct of the parties.

Recognize that a contract requires mutual enforceability to be considered valid.

Understand the distinction between executory and executed contracts based on performance.

Grasp the elements essential for the formation of a valid contract including offer, acceptance, and consideration.

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Definitions:

Golgi Tendon Reflex

A protective reflex that prevents muscle damage during excessive force generation by causing muscle relaxation.

Brachial Plexus

A network of nerves that originates from the spinal cord in the neck and supplies the arms and hands with sensory and motor function.

Muscles of Arm

Groups of tissues that contract to facilitate movement of the arm and hand, including flexion, extension, abduction, and adduction.

Phrenic Nerves

Nerves that innervate the diaphragm, playing an essential role in the process of breathing.