Economy, asked by 123555, 1 year ago

what is liquidity trap in economics?​

Answers

Answered by thelmaokanda
3

Liquidity trap in Econs occurs when current interest rates are low and savings rates are high, rendering monetary policy ineffective. Here, consumers choose to avoid bonds and keep their funds in savings because they belief that interest rates will rise in the future.


123555: tnks
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