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    Macroeconomics Principles Study Set 1
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    Exam 13: Monetary Policy
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    Keynes Defined the Liquidity Trap as a Situation in Which
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Keynes Defined the Liquidity Trap as a Situation in Which

Question 171

Question 171

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Keynes defined the liquidity trap as a situation in which, once interest rates decrease, individuals spend their money rather than holding onto it.

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