Why is the concept of a liquidity trap important in the conduct of monetary policy?

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Financial Institutions, Markets And Money

ISBN: 1704

12th Edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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Question Posted: Sep 27, 2018 01:28 PM

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Why is the concept of a liquidity trap important in the conduct of monetary policy?

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If money supply is expanded so much that any extra money would be hoarded rather than lent ...View the full answer

Financial Institutions, Markets And Money

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