Multiple Choice
According to Keynesians,__________ monetary policy will not remove the economy from a(an) __________ gap if __________.
A) contractionary; recessionary; investment is interest-insensitive
B) expansionary; recessionary; the economy is in the liquidity trap
C) expansionary; inflationary; investment is interest-insensitive
D) contractionary; inflationary; the economy has been in the inflationary gap for more than one year
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
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