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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Definitions:

Epicycles

In ancient astronomy, concentric spheres used to explain the irregular movements of planets in a geocentric model.

Mass

A property of physical objects that measures the amount of matter within them, often influencing how they interact with forces and each other.

Quantity of Matter

This term typically refers to the mass of an object or substance, indicating the amount of material present.

U.S. President

The elected head of state and head of government of the United States, serving as the country's chief executive officer.