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When a Liquidity Trap Situation Exists,we Know That

Question 65

Multiple Choice

When a liquidity trap situation exists,we know that


A) an open market operation will have no effect on the supply of money.
B) an open market operation will have no effect on the monetary base.
C) fiscal policy will have no effect on the demand for goods.
D) expansionary monetary policy will be deflationary.
E) none of the above

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