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Which of the following best describes the liquidity trap envisioned by Keynes?
The LM curve is relatively flat; expansionary monetary policy will have no effect on real GDP.
The LM curve is relatively steep; expansionary monetary policy will significantly lower the interest rate.
Both the IS and LM curves are horizontal with an indeterminate level of GDP.
With a flat LM curve, expansionary fiscal policy can have no effect on real GDP.