Liquidity trap is a situation when,
A) all potential investors expect the rate of interest to rise in future
B) all potential investors expect the rate of interest to fall in future
C) natural rate of interest is above the critical rate of interest
D) demand for money for speculative purpose is interest inelastic
Correct Answer:
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Q12: According to New Classical Economist, Business cycle
Q13: The shape of Laffer curve is
A)inverted u
Q14: The curve which explains relationship between tax
Q15: According to New classical Economics
A)anticipated policy change
Q16: According to New Classical Economics Philips curve
Q18: The classical economists focussed on the role
Q19: According to Milton Friedman Theory of permanent
Q20: The classical model of economic development emphasises
A)laissez-faire
Q21: Assertion (A): According to Keynes, individuals hold
Q22: Speculative demand for money is zero when
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