Question: a) Using the IS-LM model, explain graphically why an expansionary monetary policy is not effective when the economy is in the liquidity trap. b) Using

a) Using the IS-LM model, explain graphically why an expansionary monetary

policy is not effective when the economy is in the liquidity trap.

b) Using the IS-LM model, explain intuitively why an expansionary monetary

policy is not effective when the economy is in the liquidity trap.

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