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Because Keynes's Theory Recognized the Problem of Interest Rates Being

Question 39

Multiple Choice

Because Keynes's theory recognized the problem of interest rates being at the zero bound (the liquidity trap) ,it:


A) perceived the economy as being mostly self-adjusting.
B) favoured the use of monetary policy over fiscal policy.
C) considered technological progress the answer to any economic slump.
D) favoured the use of fiscal policy over monetary policy.

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