If the Economy Is in the Liquidity Trap,people Think That

question 50

Multiple Choice

If the economy is in the liquidity trap,people think that

• A) the money supply will soon rise.
• B) bond prices have nowhere to go but up.
• C) bond prices will not change.
• D) bond prices have nowhere to go but down.
• E) none of the above

---

Definitions:

Scientific Management

A management theory that advocates for the use of scientific methods to determine the most efficient ways to complete tasks and organize work.

Manufacturing

The method of transforming unprocessed materials, components, or parts into complete products that satisfy the demands or criteria of a customer.

Economic Sector

A division within an economy, specifying the type of activity or services performed, such as agriculture, manufacturing, or services.

Postindustrial Societies

Societies that are characterized by an economy dominated by the service sector and information technology, rather than industrial manufacturing.