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According to the Keynesians, the demand for money depends on income and interest rate. The liquidity trap occurs because the interest rate is so
According to the Keynesians, the demand for money depends on income and interest rate. The liquidity trap occurs because the interest rate is so very low and everyone expects it to rise. Please draw and explain whether the fiscal policy is effective or not when there is liquidity trap.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
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