Suppose it were proved that liquidity traps are not real and that investment is not interest insensitive.

Question:

Suppose it were proved that liquidity traps are not real and that investment is not interest insensitive. Would this be enough to disprove the Keynesian claim that expansionary monetary policy is not always effective at changing Real GDP? Why or why not?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

Question Posted: