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Doctors Medicines MCQs Q&A

  1. Ineffective monetary policy
  2. Very high fiscal deficit
  3. Very high inflation
  4. None of the above
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1 Answers

Option 1 : Ineffective monetary policy

A liquidity trap is a situation, described in Keynesian economics, in which injections of cash into the private banking system by a central bank fail to decrease interest rates and hence make monetary policy ineffective.

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