Asked by Jovelyn Angell on Jun 30, 2024
Verified
The concept of the liquidity trap was formulated by
A) John Maynard Keynes.
B) Milton Friedman.
C) Stephen Pizzo.
D) Aristotle.
E) Marshall McLuhan.
Liquidity Trap
A condition in which interest rates are low and savings rates are high, rendering monetary policy ineffective in stimulating economic growth.
John Maynard Keynes
A British economist whose theories, known as Keynesian economics, had a major impact on modern economic and political theory as well as on fiscal policies of governments.
- Explain the reasons behind the Keynesian perspective on money retention.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
A
Explanation :
The concept of the liquidity trap was formulated by John Maynard Keynes. He first introduced this concept in his book, The General Theory of Employment, Interest and Money, published in 1936.
Learning Objectives
- Explain the reasons behind the Keynesian perspective on money retention.