Use an IS-LM diagram to illustrate Krugman’s contention that fiscal policy is more effective as a macroeconomic policy tool when compared to monetary policy, given that the economy is in a liquidity trap.

Use an IS-LM diagram to illustrate Krugman’s contention that fiscal policy is more effective as a macroeconomic policy tool when compared to monetary policy, given that the economy is in a liquidity trap.

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