Suppose it were proved that liquidity traps do not occur and that investment is not interest insensitive.

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Suppose it were proved that liquidity traps do not occur and that investment is not interest insensitive. Would this be enough to disprove the claim that expansionary monetary policy is not always effective at changing Real GDP? Why or why not?

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Microeconomics

ISBN: 9780357720639

14th Edition

Authors: Roger A. Arnold, Daniel R Arnold, David H Arnold

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Question Posted: Nov 01, 2024 07:00 AM

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Suppose it were proved that liquidity traps do not occur and that investment is not interest insensitive.

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Microeconomics

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