Liquidity Trap - definition, examples and explanation - Economics Help
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1. If the economy is currently in a liquidity trap, an increase in the money supply would shift the MS curve _ and interest rates would _. A. right; decrease B. right;
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Liquidity Trap: Definition, Causes, and Examples
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explain the concept of liquidty trap. Illustrate with diagrams | Homework.Study.com
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Suppose a liquidity trap exists. Graphically illustrate and explain the effects of an increase in government spending using the IS-LM model. | Homework.Study.com
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