The Neo-Fisherian result that increasing the nominal interest rate increases inflation is a startling one because
A) this result is obtained in a New Keynesian model that is usually used to justify conventional central banking ideas.
B) it is wrong.
C) Keynes would agree with it.
D) Steve Poloz supports Neo-Fisherism.
E) it also holds in the Basic New Keynesian model.
Correct Answer:
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Q25: In the Basic New Keynesian model, when
Q26: In the New Keynesian Rational Expectations Model,
Q27: In the Basic New Keynesian Model, an
Q28: In the New Keynesian Rational Expectations model
Q29: The following is a suggested cause of
Q31: Neo-Fisherians assert
A) that the New Keynesian model
Q32: To make forward guidance work,
A) the central
Q33: In the New Keynesian Rational Expectations model,
Q34: The idea of a "savings glut" was
Q35: Forward guidance, in the Basic New Keynesian
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