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Money and interest rates

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Question 22

The table below shows macroeconomic indicators for a European economy between 2018 and 2022.

Indicator20182019202020212022
Real GDP Growth Rate (%)2.101.60-5.804.201.50
Inflation Rate (%)1.901.400.502.807.90
Central Bank Policy Interest Rate (%)1.501.000.100.252.50
Unemployment Rate (%)4.204.506.805.904.10

In which year was this economy most at risk of experiencing a liquidity trap?

2018

2020

2021

2022

Money and interest rates Questions

  1. A Level
  2. /Economics
  3. /Money and interest rates