【正确答案】As the money supply increases the supply-of-money curve intersects the demand-for-money curve at flat part of the latter where an increase in the money supply no longer reduce the interest rate. This flat portion of the demand-for-money is called liquidity trap, which illustrates that the interest rate is insensitive to the increase of the money supply and people’s demand for money becomes infinitely large at the flat portion of the demand-for-money.