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Business, 25.04.2020 01:15 shaelyn0920

A liquidity trap occurs at a very flat section of the LM curve. This can be cause by an extreme interest elasticity of money. Which of the following are associated with a liquidity trap? expansionary monetary policy is ineffective fiscal policy becomes ineffective the expansionary prospects on additional money become limitless inflation becomes a looming problem

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A liquidity trap occurs at a very flat section of the LM curve. This can be cause by an extreme inte...
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