When there is a liquidity trap, when the Fed adds bank reserves, ...

[anshika]

When there is a liquidity trap, when the Fed adds bank reserves, there is a large effect on borrowing, investment and aggregate demand.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Economic growth is measured as:
 a. the quarterly percentage change in nominal GDP.
  b. total output per year divided by the inflation rate.
  c. total nominal GDP at the end of each year.
  d. the percentage change in population growth per year.
  e. the annual percentage change in real GDP.

[cloudre37]

Answer to Question 1

False

Answer to Question 2

e