Statement I: John Maynard Keynes called the hoarding of money at very low interest rates a "liquidity trap."
Statement II: Since the late 1990s,Japan has been caught in a liquidity trap.

Question

Quizplus · Accepted Answer

Statement I is true as Keynes did call hoarding money at very low interest rates a "liquidity trap." Statement II is also true, as Japan has been identified as being caught in a liquidity trap since the late 1990s due to their long period of near-zero interest rates, stagnant growth, and deflation.

Statement I: John Maynard Keynes Called the Hoarding of Money