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(Liquidity traps) (a) Define a liquidity trap (b) Show in an IS-LM figure how a liquidity trap looks (c) What is the role of fiscal

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(Liquidity traps) (a) Define a liquidity trap (b) Show in an IS-LM figure how a liquidity trap looks (c) What is the role of fiscal policy for taking an economy out of a liquidity trap (d) Why is fiscal policy super effective during a liquidity trap in increasing GDP? and how is that similar to the effects of fiscal policy in a fixed exchange rate regime

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