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Under Fiscal Stabilization Policy in the New Keynesian Model,after a Positive

Question 27

Multiple Choice
Under fiscal stabilization policy in the New Keynesian model,after a positive shock to output,

Under fiscal stabilization policy in the New Keynesian model,after a positive shock to output,


A) the government increases expenditures and the central bank increases the money supply.
B) the government increases expenditures and the central bank decreases the money supply.
C) the government decreases expenditures and the central bank increases the money supply.
D) the government decreases expenditures and the central bank decreases the money supply.

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