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    Money and Banking Study Set 1
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    Exam 26: Rational Expectations Redux: Monetary Policy Implications
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    If the Federal Funds Rates Falls Less Than Expected, Then
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If the Federal Funds Rates Falls Less Than Expected, Then

Question 68

Question 68

Multiple Choice

If the federal funds rates falls less than expected, then output falls under the


A) new classical model.
B) new Keynesian model.
C) both of the above.
D) none of the above.

Correct Answer:

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