Under a liquidity trap in the New Keynesian model,
A) prices cannot be sticky.
B) monetary policy is ineffective.
C) the economy is always efficient.
D) fiscal policy is ineffective.
B
Economics
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A firm purchases more capital equipment. We would expect to observe
A) a decrease in the supply curve of labor to this firm. B) an increase in the supply of labor for this firm. C) an increase in the demand for labor by this firm. D) an increase in the wage rate paid for labor by this firm.
Economics
How are flexible exchange rates used to eliminate a balance-of-payments deficit or surplus?
What will be an ideal response?
Economics