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A liquidity trap is a situation where monetary policy becomes incapable because individuals crowd…

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What is the liquidity trap? How has this affected the Federal Reserve's monetary policy since the Great Recession of 2007?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section16.1: How Monetary Policy Influences Aggregate Demand

Problem 1QQ

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Liquidity trap
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