Multiple Choice
In the liquidity trap case where the LM schedule is nearly horizontal,
A) both monetary and fiscal policy are highly effective.
B) monetary and fiscal policy are ineffective.
C) monetary policy is ineffective and fiscal policy is effective.
D) fiscal policy is ineffective and monetary policy is effective.
Correct Answer:
Verified
Correct Answer:
Verified
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Q38: Comparing the simple Keynesian model with the
Q39: A simultaneous reduction in both taxes and
Q40: Those economists who believe that monetary policy
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Q43: In the simple Keynesian model,government spending<br>A)have a
Q44: If consumption is given by C =
Q45: Changes in all of the following shift
Q46: If the level of government spending rises
Q47: The difference between the simple Keynesian model