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5. What is crowding out, and when would you expect it to occur? In the face of substantial crowding out, which will he more successful

5. What is crowding out, and when would you expect it to occur? In the face of substantial crowding out, which will he more successful scal or monetary policy? (spas) 6. What is a liquidity trap? if the economy was stuck in one, would you advise the use of scal or monetary policy? (4an T. Consider the central bank imposes a contractionsry monetary policy under fixed exchange rates and perfect capital mobility. Show and explain in a yaph. Discuss what if it was a contractionary scal policy? Graph it. (10pm)

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