Question: 3) Fill in the table below. Which situations correspond to a liquidity trap. Case nominal expected real policy risk nominal policy inflation real borrowing interest

3) Fill in the table below. Which situations correspond to a liquidity trap. Case nominal expected real policy risk nominal policy inflation real borrowing interest premium interest borrowing interest rate rate interest rate rate it rt X 3 0 0 IN 4 2 1 W O 2 4 4 2 6 0 -2

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