Question: expiam changes in the main economic variables. interested rate (1), Demand (D), Output (Y), and exchange rate (E). 2. Explain the liquidity trap. Use figures

expiam changes in the main economic variables. interested rate (1), Demand

expiam changes in the main economic variables. interested rate (1), Demand (D), Output (Y), and exchange rate (E). 2. Explain the liquidity trap. Use figures to explain why monetary policy is meffective in this situation. What about fiscal policy (20 points)

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