Economics · Monetary Policy
An economic scenario where low or zero interest rates fail to stimulate consumer spending and monetary policy becomes ineffective is known as a:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Liquidity Surplus
- 2Liquidity Risk
- 3Liquidity Trap✓
- 4Liquidity Gap
Correct answer
Liquidity Trap
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