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Anchored Inflationary Expectations Are Beneficial to an Economy Because They

Question 32

Multiple Choice

Anchored inflationary expectations are beneficial to an economy because they:


A) reduce the inside lag of macroeconomic policymaking.
B) rapidly shift the central bank's monetary policy reaction function
C) shorten recessions caused by adverse inflation shocks.
D) eliminate any changes in short-run aggregate supply.

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