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Why is it difficult to determine whether fluctuations in the target interest rate have led to busine

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Why is it difficult to determine whether fluctuations in the target interest rate have led to busine

Why is it difficult to determine whether fluctuations in the target interest rate have led to business cycle fluctuations in the United States, according to the New Keynesian model?
A) Because the Federal Reserve may change the target interest rate according to economic conditions.
B) Because money is neutral.
C) Because the target interest rate is nominal, not real.
D) Because inflation is not well measured.

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Macroeconomics

Edition: 5^th

Author: Williamson

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Ao9 Author

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8 years ago

Solved!!

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Gordis

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8 years ago

I'm assuming I was right? Wink Face

Don't forget to mark as solved.

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