'Liquidity trap' is a situation in which:



[ A ]    there is an excess of foregin exchange reserves in the economy leading to excess of money supply
[ B ]    people want to hold only cash because prices are falling everyday
[ C ]    people want to hold only. cash because there is too much of liquidity in the economy
[ D ]    the rate of interest is so low that no one wants to hold interest bearing assets and people wants to hold cash right
Answer : Option D
Explanation :
500
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