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In the Basic New Keynesian Model, the Phillips Curve Specifies

Question 41

Multiple Choice

In the Basic New Keynesian model, the Phillips curve specifies that, when the anticipated future rate of inflation increases, inflation

A) increases more than one-for-one.
B) increases one-for-one.
C) increases less than one-for-one.
D) stays the same.
E) decreases.

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