The phenomenon that interest rates may be so low that increases in the money supply will have no impact on aggregate demand is called: monetary incapacitation. none of the other answers are correct the sterilization of money. the horizontality of demand. the liquidity trap.
The phenomenon that interest rates may be so low that increases in the money supply will have no impact on aggregate demand is called: monetary incapacitation. none of the other answers are correct the sterilization of money. the horizontality of demand. the liquidity trap.
Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical
Section: Chapter Questions
Problem 6E
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The phenomenon that interest rates may be so low that increases in the money supply will have no impact on aggregate |
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Publisher:
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