34. If the financial market is in a liquidity trap ...

a. monetary policy is ineffective in bringing about a decrease in the interest rate.

b. financial money market participants are willing to hold less money at the same interest rate.

c. a decrease in the interest rate can be brought about by buying of bonds by the central bank.

d. there is a high demand for bonds.

1. Only a

2. Only c

3. a and c

4. a, b and d

5. b, c and d