"The Price Level May Fall but It Will Not Necessarily

Multiple Choice

"The price level may fall but it will not necessarily lower the interest rate, not if we are in a liquidity trap." This is a statement a __________ economist might make as an explanation of why the economy __________ pull out of a recession.

A) Classical; will
B) Classical; may not be able to
C) Keynesian; will
D) Keynesian; may not be able to