Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment

Under the liquidity trap conditions, an increase in money supply will
(a) increase investment
(b) increase level of employment
(c) reduce the rate of interest
(d) have no effect on interest rate, investment and employment
by

1 Answer

Answer :

(c) reduce the rate of interest
by

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