Economics · Monetary Economics
In Keynes's liquidity preference theory of interest, the liquidity trap represents a situation of:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Unitary elastic money demand
- 2Zero supply of money
- 3Perfectly inelastic money demand
- 4Perfectly elastic money demand✓
Correct answer
Perfectly elastic money demand
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