Given the current situation you might want to mention the Fisher effect as a third factor influencing the slope of the AD curve. In a liquidity trap the slope of the AD curve is determined by net effect of the real balance Pigou effect (downward sloping) and the Fisher effect (upward sloping). See both Tobin and Krugman for the slope of the AD curve in a liquidity trap.
helpful!
camodude51 5 days ago
This helped a lot! Thanks!!
MDriver0415 1 week ago
@kevinchavez42 That's what I thought!
tallbus1 2 weeks ago
So good, thank you!!
MsBirdy12345 1 month ago
You made this subject interesting to me. Thanks!
samat94 1 month ago
thank you help alot cuz I have a final exam tomorrow~!
bone476 2 months ago
thank you very much
4ognen4ognen4 3 months ago
Thanks - this is very helpful!!
visitlynn 5 months ago
Given the current situation you might want to mention the Fisher effect as a third factor influencing the slope of the AD curve. In a liquidity trap the slope of the AD curve is determined by net effect of the real balance Pigou effect (downward sloping) and the Fisher effect (upward sloping). See both Tobin and Krugman for the slope of the AD curve in a liquidity trap.
time903 6 months ago
Thank you! Cheers!
rmmalimet 6 months ago