Liquidity Trap Refers to a Situation in Which _____

Liquidity trap refers to a situation in which _____.

A) even zero short-term nominal interest rates fail to stimulate the economy due to households and banks hoarding cash
B) zero short-term nominal interest rates stimulate the economy due to additional borrowing from households and banks
C) negative short-term nominal interest rates fail to stimulate the economy due to households and banks hoarding cash
D) Neither households nor banks want to hold cash