At what interest rate do some economists believe a liquidity trap will occur?
A) 0 percent
B) 2 percent
C) 4 percent
D) 6 percent

Question

Quizplus · Accepted Answer

Some economists believe that a liquidity trap can occur at 0 percent interest rates or near-zero interest rates, where additional injections of cash into the economy fail to stimulate economic growth or investment due to the lack of demand from consumers and investors.

At What Interest Rate Do Some Economists Believe a Liquidity