Low interest rates cause people to hoard money, making output and employment stagnate.
The concept of the liquidity trap was first proposed by John Maynard Keynes. He believed that if interest rates were extremely low, people would hoard money in the believe that interest rates could only increase. This results in a stagnation in the level of investment, which would theoretically halt the growth of income and employment. For this reason, Keynes and his proponents maintained that fiscal policy, rather than monetary policy, would be the most effective tool for leaving the great depression.
Answer:
Nestro has committed battery.
Explanation:
Even though there is a whole story behind what Nestro did - his admiration for Monica, the fact that he didn't mean to harm her, and the fact that he apologized -, he still committed battery. Battery can be defined as the unlawful and or unwanted touching of the person of another by the aggressor. Monica did not wish or expect to be touched at all. Therefore, Nestro could be punished for touching her.
Answer:
B. The Establishment of the League of Nations.
Explanation:
It was suppose to be like what the United Nations are today, a place were nations could come and discuss their problems with each other. Unfortunately it was not to be, with Congress voting not to join.
The exchange rate expresses <span>the value of one nation’s currency in terms of another nation’s currency.
</span>
Answer:
your answer is on Wikipedia
