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Further, additions made to the money supply fail to result in price level changes, as consumer behavior leans toward saving funds into lower-risk and highly liquid mechanisms.Without changes to interest rates, consumers are not motivated to invest into other options.

This is compounded by the fact that, with interest rates approaching zero, there is little room for additional incentive to attract well-qualified candidates.

Low interest rates alone do not define a liquidity trap.

For the situation to qualify, there has to be a lack of bondholders wishing to keep their bonds, and a limited supply of investors looking to purchase them.

One marker of a liquidity trap is particularly low interest rates.

These low interest rates can affect bondholder behavior, along with other concerns regarding the current financial state of the nation, resulting in the selling of bonds in a way that is harmful to the economy.

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One marker of a liquidity trap is particularly low interest rates.

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