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valputin valputin
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8 years ago
Suppose that there is a positive aggregate demand shock and the central bank commits to an inflation rate target. If the commitment is credible, then
A) the short-run aggregate supply curve will not shift.
B) the public's expected inflation will remain unchanged.
C) over time inflation will fall back down to the inflation target.
D) all of the above.
E) both A and B.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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#2
8 years ago
Thank you
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
You're very welcome, valputin
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