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SSC CHSL 04 Aug 2023 Shift 1 Solved Paper

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Question : 34

Total: 100

Which of the following statements is/are correct regarding liquidity trap?
i. It is the point where speculative demand for money is infinitely inelastic and the liquidity preference curve becomes perfectly elastic.
ii. It is the point where speculative demand for money is infinitely elastic and the liquidity preference curve becomes perfectly inelastic.
iii. It is the point where speculative demand for money is infinitely elastic and the liquidity preference curve becomes perfectly elastic.
iv. It is the point where speculative demand for money and the liquidity preference curves are not related.

Only statement i is correct
Only Statement iii is correct
Only Statement iv is correct
Only Statements i and ii are correct

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