Suppose the Money Market Is in the Liquidity Trap and That

question 89

Multiple Choice

Suppose the money market is in the liquidity trap and that the economy is experiencing a recessionary gap.A Keynesian economist would most likely advocate

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

---

Definitions:

Timing

The selection of the most appropriate or effective time to perform an action or release information.

Success

The achievement of a goal or the attainment of higher status or position.

Message

A piece of information or communication sent from one person or group to another, typically involving a sender, a message, and a recipient.

Specific Purpose

Identifies what you hope to accomplish with your message and what your audience should do or think after receiving your message.