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Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 15

9708Money and banking

What is a part of Keynesian economic analysis?

  1. Aa liquidity trap below which interest rates are ineffective
  2. Ban equilibrium price that always clears the market
  3. Ca small value for the government expenditure multiplier
  4. Da vertical short-run aggregate supply curve

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Correct answer: A. a liquidity trap below which interest rates are ineffective

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