Question
In the IS-LM model, a 'Liquidity Trap' occurs when the
LM curve is horizontal. In this situation, which policy is completely ineffective in changing the level of income?Solution
Explanation: In a liquidity trap, the interest rate is at its lower bound; any increase in the money supply is simply held by the public as idle balances, failing to lower interest rates further or stimulate investment.
How many Panch-Jyoti objectives are outlined in the NSFI 2025–30 strategy?
RBI has set up a committee to evaluate the efficacy, adequacy and quality of customer service in banks, NBFCs, who is the head of this committee?
The Minister of Housing and Urban Affairs and Petroleum and Natural Gas, Shri Hardeep Singh Puri, has launched an innovative project the NIPUN for worke...
What is the projected contribution of India’s digital economy to national income by 2024-25, according to the ICRIER report?
Who defeated Olympic silver medallist Nam Su-hyeon to win gold at the Asian Archery Championships 2025?
According to the Unlisted Gems 2026 report, what revenue was recorded by Flipkart in 2025?
The Maharashtra Legislative Assembly passed a resolution to include Marathi speaking areas of _____ in the state.
National Legal Services Day in India is observed every year on which date?
With reference to the wholesale price index (WPI), consider the following statements:
1. WPI is an important index necessary for calculating in...
During testing at Maha Kumbh 2025, BHASHINI delivered real-time translation in how many Indian languages?
