Economics Q194

0. When the demand for money is infinitely elastic, further injections of money into the economy fails to affect real activity. This is known as:

  • Option : B
  • Explanation : A liquidity trap occurs when further injection of money into the economy does not affect real activity.
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *