What is a liquidity trap?
-When deflation occurs because growing debt obligations cause a decrease in aggregate demand.
-When increasing price levels result in fixed-income earners "drowning" as expenses grow while income remains constant.
-When expansionary monetary policy results in a rapidly increasing price level.
-When nominal interest rates cannot be lowered any further.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is a liquidity trap? -When deflation occurs because growing debt obligations cause a decrease in aggregate demand. -When increasing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
It is often easier for a brand-new business to get a loan than an existing business. True Or False
Answers (1)
On july 9, mifflin company receives a $8,500, 90-day, 8% note from customer payton summers as payment on account. what entry should be made on july 9 to record receipt of the note?
Answers (2)
There is no reason to believe that ad hoc attempts to repair market failures, such as determining shadow prices for unpriced social goods, or exempting social goods from the market, or using the law to address social goods that are unattainable
Answers (1)
4. What is risk tolerance? ...
Answers (1)
The economic growth model explains growth in real gdp per capita in the long run. because of the importance of labor productivity in explaining economic growth, the economic growth model focuses on the causes of increases in long-run labor
Answers (1)
New Questions in Business
Which of the following correctly describes the relationship between supply and demand A) when supply increase, demand also increases B) when supply increase, demand also decreases C) when supply decreases, demand also decreases D) supply is always
Answers (1)
Plantronics managers believe that most people around the world can wear the same type of headset. The goal is to manufacture all of the headsets in one location so that true economies of scale can be achieved in production costs.
Answers (1)
Baltimore Manufacturing Company just completed its year ended December 31, 2018. Depreciation for the year amounted to $160,000: 25% relates to sales, 20% relates to administrative facilities, and the remainder relates to the factory.
Answers (1)
In which case can we be sure real gdp rises in the short run? a. government purchases increase and taxes rise. b. government purchases increase and taxes fall. c. government purchases decrease and taxes rise. d.
Answers (1)
Mohr company purchases a machine at the beginning of the year at a cost of $23,000. the machine is depreciated using the double-declining-balance method. the machine's useful life is estimated to be 5 years with a $8,000 salvage value.
Answers (1)