The concept of 'Liquidity Trap' was introduced by:
A. David Ricardo
B. John Maynard Keynes
C. Milton Friedman
D. Adam Smith
Answer: Option B
Solution (By JKSSB Mock Tests)
Keynes introduced the concept of liquidity trap, a situation where interest rates are so low that people prefer to hold cash rather than invest in bonds, making monetary policy ineffective.
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