Analyze the result of a permanent devaluation by an economy caught in a liquidity trap of the

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Analyze the result of a permanent devaluation by an economy caught in a liquidity trap of the sort described in Chapter 17.

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:47 PM

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Analyze the result of a permanent devaluation by an economy caught in a liquidity trap of the

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An economy caught in a liquidity trap has an AA curve with a flat section at output levels far below ...View the full answer

International Economics Theory and Policy

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