Under Conditions of a Liquidity Trap and Interest-Insensitive Investment,Keynesians Would

question 173

Multiple Choice

Under conditions of a liquidity trap and interest-insensitive investment,Keynesians would be most likely to propose __________ policy to eliminate a recessionary gap.

• A) expansionary fiscal
• B) contractionary fiscal
• C) expansionary monetary
• D) contractionary monetary

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