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Which of the Following Will Occur When an Economy Is

Question 18

Multiple Choice

Which of the following will occur when an economy is faced with a liquidity trap situation?


A) a reduction in the price level will cause a rightward shift in the aggregate demand curve
B) a reduction in the price level will cause a leftward shift in the aggregate demand curve
C) the aggregate demand curve is now vertical
D) the aggregate demand curve is now upward sloping

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