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Furkat [3]
3 years ago
14

Which of these statements about liquidity traps is false? Firms are unlikely to undertake investment during liquidity traps beca

use interest rates are prohibitively high. The United States probably experienced a liquidity trap during the Great Depression. The zero bound of interest rates prevents policy makers from taking some actions that could stimulate economic growth. Expansionary monetary policy is difficult to achieve.
Business
1 answer:
nika2105 [10]3 years ago
3 0

Answer:

The correct answer is: firms are unlikely to undertake investment.

Explanation:

The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.

The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.

The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.

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Every year 3 Managers are promoted to Partner level.
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Answer: 2 years

Explanation:

Years of existing of the firm=30 years

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Number of Managers= 70;

Number of partners= 30;

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Number of years  associates has been changed in last 30 year=30/5=6

Number of years  managers has been changed in last 30 year=30/3=10

Number of times for partner=x

Number of years  partners has been changed in last 30 year=30/x=15

15x=30

x=30/2

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3 years ago
The range of an area where users can access the Internet via high-frequency radio signals transmitting an Internet signal from a
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6 0
3 years ago
Read 2 more answers
Christian and Monica are married and are both in good health with reasonably secure careers. Christian and Monica have annual in
scZoUnD [109]

Answer:

$81,750

Explanation:

The computation of the amount of total insurance is shown below:

= (Home mortgage loan + car loans + personal debts + credit card loans) ÷ 2  + estimated funeral cost

= ($120,000 + $10,000 + $14,000 + $7,500) ÷ 2 + $6,000

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5 0
3 years ago
A variety of different savings products are offered by financial institutions. Two of the most frequently sold savings investmen
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In Statement Savings Account, the interest will be relatively low and there may be a possibility of restricted number of withdrawals.

In Statement Savings Account, the interest rate gained can either increase or decline overtime while putting into consideration the interests rate set by the federal reserve.

In Statement Savings Account,  a good number of this said savings investment offers debit cards which allows a customer to withdraw money via an ATM Machine or through electronic transfer.

In Statement Savings Account, there may be restrictions as regards the minimum account balance.

while

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