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The Liquidity Trap Illustrated in Figure 15

Question 131

Multiple Choice

The liquidity trap illustrated in Figure 15.5 is the result of a A) Low opportunity cost of money. B) Low demand for cash at low interest rates. C) Fed ceiling on interest rates. D) Currency that is not serving its function as a store of value. The liquidity trap illustrated in Figure 15.5 is the result of a


A) Low opportunity cost of money.
B) Low demand for cash at low interest rates.
C) Fed ceiling on interest rates.
D) Currency that is not serving its function as a store of value.

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