The liquidity trap is the
A) vertical portion of the demand curve for money.
B) horizontal portion of the demand curve for money.
C) vertical portion of the supply curve of money.
D) horizontal portion of the supply curve of money.
E) vertical portion of the demand curve for investment.
B
You might also like to view...
Nonactivists propose doing nothing in the face of economic hardship because ________
A) activist policies can kick in at the wrong time and be counterproductive B) "markets self-correct pretty rapidly anyway" C) in the face of high unemployment, activist policies would likely lead to surges in inflation D) all of the above E) none of the above
Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:
a. rightward shift in the demand curve for hot dogs. b. leftward shift in the demand curve for hamburgers. c. rightward shift in the demand curve for hamburgers. d. leftward shift in the demand curve for hot dogs.
Answer the question on the basis of the following data. All figures are in billions of dollars. Personal Taxes 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 US Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 US Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital 25 Net Foreign Factors Income 10 Statistical Discrepancy 0 Refer to the above data. DI is:
a) $284. b) $329. c) $274. d) $402.
Unconventional monetary policy tools include all but:
A. forward guidance. B. reserve requirement. C. targeted asset purchases. D. quantitative easing.