Multiple Choice
The Neo-Fisherian result that increasing the nominal interest rate increases inflation is a startling one because
A) this result is obtained in a New Keynesian model that is usually used to justify conventional central banking ideas.
B) it is wrong.
C) Keynes would agree with it.
D) Steve Poloz supports Neo-Fisherism.
E) it also holds in the Basic New Keynesian model.
Correct Answer:
Verified
Correct Answer:
Verified
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