The situation where people are willing to hold any amount of money at a very low interest rate is called? Option 1: Double coincidence of wants Option 2: Jovons Paradox Option 3: Liquidity trap Option 4: Monetary stagnation

The answer is 'Liquidity trap'. View full solution:

CUET Economics - The situation where people are willing to hold any amount of money at a very low interest rate is called? | PYQs + Solutions

CUET Economics 2026 12th May Shift 1

Macro

Easy

Double coincidence of wants

Jovons Paradox

Liquidity trap

Monetary stagnation

✅ Correct Option: 3