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Explain why the expansionary monetary policy becomes ineffective during aliquidity trap? Suppose the government undertakes an expansionary fiscal policyby increasing it expenditure on military equipment.
Explain why the expansionary monetary policy becomes ineffective during aliquidity trap? Suppose the government undertakes an expansionary fiscal policyby increasing it expenditure on military equipment. Here, would an expansionaryfiscal policy be more effective than an expansionary monetary policy to escape aliquidity trap?
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