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    Principles of Macroeconomics
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    Exam 11: Monetary Policy and the Fed
  5. Question
    A Liquidity Trap Is Said to Exist When a Change
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A Liquidity Trap Is Said to Exist When a Change

Question 136

Question 136

Multiple Choice

A liquidity trap is said to exist when a change in monetary policy has no effect on


A) the money supply.
B) the natural level of employment.
C) aggregate supply.
D) interest rates.

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