According to the New Keynesian model, in a liquidity trap,

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In a liquidity trap, interest rates are already at zero or near-zero levels, so conventional monetary policy (such as lowering interest rates) is ineffective. In this situation, the New Keynesian model suggests that fiscal policy, such as government spending or tax cuts, can stimulate demand and help pull the economy out of the trap. Therefore, fiscal policy is considered more effective than monetary policy in a liquidity trap.

According to the New Keynesian Model, in a Liquidity Trap