Researchers have suggested that one way to avoid falling into the liquidity trap is to have higher average inflation. This is because higher average inflation leads to:
A) higher average real interest rates.
B) higher average nominal credit rates.
C) higher average effective interest rates.
D) higher average real credit rates.
E) higher average nominal interest rates.

Question

Quizplus · Accepted Answer

The Answer is E

Researchers Have Suggested That One Way to Avoid Falling into the Liquidity