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The liquidity trap scenario. | Download Scientific Diagram
1. If the economy is currently in a liquidity trap, an increase in the money supply would shift the MS curve _ and interest rates would _. A. right; decrease B. right;
Reading: Liquidity Trap | Macroeconomics
The liquidity trap: A. Refers to the vertical portion of the money demand curve. B. Refers to the possibility that interest rates may not respond to changes in the money supply. C.
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Liquidity Trap: Definition, Causes, Cures
Liquidity Trap | Reference Library | Economics | tutor2u
