The IS-LM Framework – Part 2 – William Mitchell – Modern Monetary Theory
What happens to the LM curve during a liquidity trap, where interest rates are sufficiently negative to the point that they surpass the cost of holding cash? Would it cease to continue
Fiscal and Monetary Policy Change (With Diagram)
PDF] The macroeconomics of financial crises: How risk premiums, liquidity traps and perfect traps affect policy options | Semantic Scholar
1. If the economy is currently in a liquidity trap, an increase in the money supply would shift the MS curve _ and interest rates would _. A. right; decrease B. right;
Suppose a liquidity trap exists. Graphically illustrate and explain the effects of an increase in government spending using the IS-LM model. | Homework.Study.com
IS-LM Model in Liquidity Trap | Download Scientific Diagram