Keynes defined the liquidity trap as a situation in which,once interest rates sink low,individuals spend their money rather than holding onto it.

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Keynes defined the liquidity trap as a situation in which, despite low interest rates, individuals and businesses do not increase their spending or investments, but instead hoard money or hold it in liquid assets. This lack of spending and investment can lead to a prolonged economic downturn.

Keynes Defined the Liquidity Trap as a Situation in Which,once