Which of the following statements is false?
A. A liquidity trap means that at very low interest rates people simply hold their money.
B. Since the late 1990s, Japan has been caught in a liquidity trap.
C. The liquidity trap relates to the precautionary demand for money.
D. Keynes cited the liquidity trap as one of the consequences of the speculative demand for money.
C. The liquidity trap relates to the precautionary demand for money.
You might also like to view...
Government controls over market prices frequently “backfire.”
Answer the following statement true (T) or false (F)
Suppose that an individual can hold her wealth in only two forms: money and bonds. A _______________ in the bond market would then imply that there is a ________________ in the money market
A) surplus; surplus B) shortage; shortage C) surplus; shortage D) shortage; surplus E) c and d
The collapse of the Bank of Credit and Commerce International, BCCI, showed the difficulty of international banking regulation. BCCI operated in more than ________ countries and was supervised by the small country of ________
A) 70, Luxembourg B) 100, Monaco C) 70, Monaco D) 100, Luxembourg
If High Tech Tablets brings a new personal tablet at a price of $200 for the first three months and then reduces the price of the tablet to $125, this is an example of ________.
A) first-degree price discrimination B) arbitrage C) market segmentation D) second-degree price discrimination