Statistical studies indicate that the liquidity trap

A) occurs during most recessions.
B) occurs during inflationary periods.
C) occurred only during the Great Depression.
D) has not occurred.


D

Economics

You might also like to view...

In New Keynesian macroeconomics, when marginal costs are too sticky to change in proportion to nominal aggregate demand, prices ________ and so menu costs ________ needed to explain business cycles

A) are also sticky, are B) are also sticky, are not C) are still perfectly flexible, are D) are still perfectly flexible, are not

Economics

Purchasing power parity suggests that

a. Given fixed prices, interest rates adjust so that a good costs the same across two countries b. Given fixed exchange rates, prices adjust such that a good costs the same across two countries c. All of the above d. None of the above

Economics

Inflation is an increase in:

a. prices of all products in the economy. b. homes, autos and basic resources. c. the general price level of products. d. none of these.

Economics

When the social costs of producing or consuming a good exceed the private costs, _____

a. a positive externality exists b. an inefficiently high quantity of the good will be produced and consumed, from the society's point of view c. the direct consumers of the good will bear the external costs d. the individuals involved in the production of the good do not bear the private costs e. the quantity of the good produced will be less than the socially efficient level

Economics