Write Short note on "Liquidity Trap".
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Short note on "Liquidity Trap".
Explanation:
- A liquidity trap is a condition wherein the rates of interest fall t a certain level. The liquidity trap is created by people who hold cash as they fear an adverse event in the future.
- Such as deflation, the trap is characterized by the interest rates that are up to zero.
- During the global financial crisis of 2008, the short-term interest rates of various U.S banks moved close to zero, most of the developed nations such as us, Europe, and Japan were under a liquidity trap.
Learn more about the short note on "Liquidity Trap.
- brainly.in/question/19136151 answered by learn9675.
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