The liquidity trap occurs when:
A) real interest rates are above the marginal product of capital.
B) firms have no access to stock markets.
C) too little money is held in excess reserves.
D) market interest rates are negative.
E) the Fed loses control of the money supply.

Question

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The Answer of The liquidity trap occurs when:
A) real interest rates are above the marginal product of capital.
B) firms have no access to stock markets.
C) too little money is held in excess reserves.
D) market interest rates are negative.
E) the Fed loses control of the money supply.

The Liquidity Trap Occurs When