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following argument regarding Liquidity Trap by T (true) or F (false). (1)Liquidity trap arises when real interest rate is zero percent. (2)In liquidity trap, fiscal

following argument regarding Liquidity Trap by T (true) or F (false). (1)Liquidity trap arises when real interest rate is zero percent. (2)In liquidity trap, fiscal policy has no effect on aggregate demand. (3)In liquidity trap demand for money is perfectly elastic to interest rate. (4)In liquidity trap bond price is expected to go down

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