Register
Suppose the economy is in a liquidity trap. True or false. A monetary contraction will not have any effect on the nominal interest rate, though a monetary expansion may have an effect on the nominal interest
227k views
2 votes
Suppose the economy is in a liquidity trap. True or false. A monetary contraction will not have any effect on the nominal interest rate, though a monetary expansion may have an effect on the nominal interest rate.

User Matz
by
5.2k points

1 Answer

3 votes

Answer:

False

Step-by-step explanation:

When a country is in a liquidity trap , monetary policy both contractionary and expansionary would have an effect on interest rate

User Andrea Carron
by
4.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.2m questions

6.7m answers

Other Questions

Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC
Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's
Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
Link Copied!