In the Basic New Keynesian model, if anticipated future inflation decreases,

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If anticipated future inflation decreases, households and firms will expect lower inflation in the future. This will lead to an increase in consumption and investment, as households and firms will be more willing to spend and invest if they expect inflation to be lower in the future. The increase in consumption and investment will lead to an increase in output. As output increases, inflation will fall, as the increase in supply will put downward pressure on prices.

In the Basic New Keynesian Model, If Anticipated Future Inflation