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Economics A Level (DONEEEEEEE)
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Pregunta:
What is a Liquidity Trap?
Autor: eric_galvaoRespuesta:
-When the Population feels Pessimstic and unhopeful for the Economy’s Future, they will Hold on to the Money and not Borrow more. Therefore the Lowering Interest Rates will not cause Ripple Effects [More Consumption, More Confidence..] meaning Monetary Policy is Useless
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eric_galvao