What is a liquidity trap, and how does monetary policy work in a liquidity trap?

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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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Question Posted: Feb 21, 2020 09:27 AM

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What is a liquidity trap, and how does monetary policy work in a liquidity trap?

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A liquidity trap is when monetary policy becomes ineffective due to very lowinterest rates combined ...View the full answer

Macroeconomics

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