What is meant by a liquidity trap

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Reference no: EM131083242

a. What is meant by a Liquidity Trap?

b. What was John Maynard Keynes’ solution for an economy that found itself in a Liquidity Trap?

c. What role does “quantitative easing” play in countering a Liquidity Trap? Give examples from the recent experiences of Japan and Europe.

Reference no: EM131083242

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