Need tutoring for A-level economics? Get in touch via enhancetuition@gmail.com. In this video, you'll learn about the liquidity preference model and the liquidity trap.
it’s so ironic how I was studying this topic yesterday. Thank you so much for these videos! They’re so timely as my exams are in June and so far They have really helps me! God bless you
The explanation is easy to follow, concept well explained , and conclusion naturally follows. But I still have one question, can the central bank lower the interest rate directly to zero instead of trying to increase the money supply?
No its not loans. Bonds are government papers that has a cost . For exmpl bank gives you paper saying cost=200$ for 2024, 300$ for 2026. You can buy and hold it or trade with it
