"Even If There Is a Liquidity Trap or Interest-Insensitive Investment

"Even if there is a liquidity trap or interest-insensitive investment, a falling price level will increase the real money supply and real wealth, and this impacts consumption." This is a statement a __________ economist might make as an explanation of why the economy __________ pull itself out of a recession.

A) Classical; will
B) Classical; may not be able to
C) Keynesian; will
D) Keynesian; may not be able to

Correct Answer:

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