Business, 31.03.2020 00:07 emilyrobles

The term liquidity trap describes a macroeconomic scenario in which:
A. low interest rates cause people to hoard money, making output and employment stagnate.
B. increased levels of imports cause a country to shift away from manufacturing, which leads to increasingly higher levels of imports.
C. an excess of cash is introduced into the economy, causing large levels of inflation.
D. low interest rates cause firms to shift toward capital and away from labor, increasing unemployment.

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The term liquidity trap describes a macroeconomic scenario in which:
A. low interest rates ca...

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