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    Money the Financial System
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    Exam 26: Money and Output in the Short Run
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    In Keeping with the New Keynesian Model, the European Central
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In Keeping with the New Keynesian Model, the European Central

Question 1

Question 1

Multiple Choice

In keeping with the New Keynesian model, the European Central Bank


A) changes policy unexpectedly.
B) increases the money supply at a steady rate.
C) seeks to fine tune small changes in economy activity.
D) seeks to maintain credibility as an inflation fighter.

Correct Answer:

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