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In the New Keynesian Rational Expectations Model, in the Phillips

Question 40

Multiple Choice

In the New Keynesian Rational Expectations Model, in the Phillips curve relationship,


A) inflation does not depend on anticipated future inflation.
B) inflation increases one-for-one with anticipated future inflation.
C) inflation increases more than one-for-one with anticipated future inflation.
D) inflation increases less than one-for-one with anticipated future inflation.
E) inflation decreases when anticipated future inflation increases.

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