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24-06-2020
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Suppose the economy is in a liquidity trap. True or false. A monetary contraction will not have any effect on the nominal interest rate, though a monetary expansion may have an effect on the nominal interest rate.

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ewomazinoade ewomazinoade

27-06-2020

Answer:

False

Explanation:

When a country is in a liquidity trap , monetary policy both contractionary and expansionary would have an effect on interest rate

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