Multiple Choice
The New Keynesian model and the monetary intertemporal model are essentially identical EXCEPT that
A) nominal and real interest rates are permitted to fluctuate.
B) Bank of Canada policy is restricted.
C) total factor productivity is neutral.
D) the price level is not sufficiently flexible for the goods market to clear in the short run.
E) money is neutral.
Correct Answer:
Verified
Correct Answer:
Verified
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