In the liquidity trap,the demand curve for investment is horizontal.

Name: In the liquidity trap,the demand curve for investment is horizontal.
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In a liquidity trap, it is the demand curve for money that becomes perfectly elastic (horizontal), not the demand curve for investment. The liquidity trap refers to a situation where interest rates are low and savings rates are high, making monetary policy ineffective at stimulating economic growth.

In the Liquidity Trap,the Demand Curve for Investment Is Horizontal