Consider the following statements, with reference to the liquidity trap:

1. It is a situation in which the general public is prepared to hold on to whatever amount of money is supplied, at a given rate of interest.

2. In this situation the interest rate gets increases manifold.

3. Open Market Operation helps in overcoming this situation.

Which of the above statement is/are correct?

1
1 only
2
2 and 3 only
3
3 only
4
1, 2, and 3

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