Question: please help with this question A liquidity trap is an occurance in the economy where the interest rate is so low people will prefer holding

please help with this question

A liquidity trap is an occurance in the economy where the interest rate is so low people will prefer holding cash to bonds. In other words, people stop saving and start hoarding cash. In this situation, if the Federal Reserve wants to stimulate the economy by increasing the money supply what would they do? 0 a. They buy the bonds people do not want 0 b. They can decrease the interest rate further. 0 c. They can lower the reserve ratio. 0 d. None of these. 0 e. They cannot since people are not putting cash in banks

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