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  3. Study Set
    Money and Banking Study Set 1
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    Exam 26: Rational Expectations Redux: Monetary Policy Implications
  5. Question
    When a Central Bank Announces That It Will Lower Inflation
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When a Central Bank Announces That It Will Lower Inflation

Question 3

Question 3

Multiple Choice

When a central bank announces that it will lower inflation, it is attempting to influence


A) IS.
B) AD.
C) AS.
D) money demand.

Correct Answer:

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