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In Liquidity Trap Caused by Deficient Financial Liquidity,the Central Bank

Question 48

Multiple Choice
In liquidity trap caused by deficient financial liquidity,the central bank action that matters is
A) open market purchases of government bonds.
B) the interest rate charged on reserves.
C) the interest rate charged on government bonds.
D) open market sale of government bonds
E) quantitative easing.

In liquidity trap caused by deficient financial liquidity,the central bank action that matters is


A) open market purchases of government bonds.
B) the interest rate charged on reserves.
C) the interest rate charged on government bonds.
D) open market sale of government bonds
E) quantitative easing.

Correct Answer:

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