Which of the following indicates a Liquidity trap? - Study24x7
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UPSC & State PSC
1008 followers study24x7 24 Apr 2021 07:00 PM study24x7 study24x7

Which of the following indicates a Liquidity trap?

A

 expansionary monetary policy does not encourage economic growth

B

open market operations results in decrease in interest rates

C

government prefers fiscal policies over monetary policies to regulate the money supply

D

government undergoes liquidation of the government holdings on larger-scale to reduce fiscal deficit

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