What is the liquidity trap and why is it so dangerous how, Business Economics

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What is the liquidity trap and why is it so dangerous how

What is the liquidity trap and why is it so dangerous? How does expected deflation set a floor on the real interest rate that the Fed can set? Why is fiscal policy crucial in a liquidity trap? What is meant by a deflationary spiral. Be able to use the AE-PC model to describe the effects of a liquidity trap.

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Business Economics: What is the liquidity trap and why is it so dangerous how

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Business Economics: What is the liquidity trap and why is it so dangerous how

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