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In the Basic New Keynesian Model, the Optimum for the Central

Question 37

Multiple Choice

In the Basic New Keynesian model, the optimum for the central bank is/are


A) a target for the money supply.
B) targets for inflation and the quantity of investment.
C) targets for inflation and the real interest rate.
D) targets for fiscal policy and inflation.
E) targets for the Bank Rate and the deposit rate.

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