Economy, asked by anmols8100, 2 days ago

explain liquidity trap? with diagram

Answers

Answered by verma1085

Explanation:

Liquidity trap refers to a situation in which an increase in the money supply does not result in a fall in the interest rate but merely in an addition to idle balances: the interest elasticity of demand for money becomes infinite.

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Answered by antraanand100

Explanation:

Liquidity trap refers to a situation in which an increase in the money supply does not result in a fall in the interest rate but merely in an addition to idle balances: the interest elasticity of demand for money becomes infinite.

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explain liquidity trap? with diagram​

Answers

Liquidity trap refers to a situation in which an increase in the money supply does not result in a fall in the interest rate but merely in an addition to idle balances: the interest elasticity of demand for money becomes infinite.

explain liquidity trap? with diagram