In the new keynesian model does a liquidity trap imply that
1. What happens when the money supply increases in a liquidity trap?
2. In the New Keynesian model, does a liquidity trap imply that no economic policy can close a positive output gap?
3. What are the faults of the New Keynesian model?
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1 what happens when the money supply increases in a liquidity trap2 in the new keynesian model does a liquidity trap
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