The Neo-Fisherian result that increasing the nominal interest rate increases inflation is a startling one because
A) it is wrong.
B) it also holds in the Basic New Keynesian model.
C) this result is obtained in a New Keynesian model that is usually used to justify conventional central banking ideas.
D) Keynes would agree with it.
E) Steve Poloz supports Neo-Fisherism.
Correct Answer:
Verified
Q3: The Phillips curve was first noticed in
Q4: Neo-Fisherism
A)is widely accepted.
B)involves thinking about radical new
Q5: The Bank of Canada commenced inflation targeting
Q6: In the Basic New Keynesian model, when
Q7: In the New Keynesian Rational Expectations model,
Q9: The central bank loss function can be
Q10: For the central bank, loss increases as
A)the
Q11: In 1981, inflation in Canada reached
A)13%.
B)5%.
C)2%.
D)200%.
E)20%.
Q12: In the New Keynesian Rational Expectations model
Q13: In the New Keynesian Rational Expectations Model,
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