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Graph & investigate the short run implications of fiscal expansion under liquidity trap: Scenario 1: Non-independent...

Graph & investigate the short run implications of fiscal expansion under liquidity trap:

Scenario 1: Non-independent monetary policy

i.Short-run effect

ii.Long-run effect

Scenario 2: Independent monetary policy

i.Short-run effect

ii.Long-run effect

What’s the major difference between the policy effects of the Scenarios 1 and 2?

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