MCQOPTIONS
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| 1. |
An economy with very low rate of interest and where economic agents expect the interest rate to rise in future and consequently bond prices to fall, causing capital loss in the economy is going through a situation know as |
| A. | Hyperinflation |
| B. | Double dip recession |
| C. | Slow down in the economy |
| D. | Liquidity trap |
| Answer» E. | |