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    Exam 32: The Fed Model: Linking Interest Rates, Output, and Inflation
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    Take a Look at the IS-MP-PC Model Shown Here
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Take a Look at the IS-MP-PC Model Shown Here

Question 105

Question 105

Multiple Choice

Take a look at the IS-MP-PC model shown here. If the expected inflation rate is 2.5%, the actual inflation rate is:
Take a look at the IS-MP-PC model shown here. If the expected inflation rate is 2.5%, the actual inflation rate is:   A) 2.5%. B) 1.5%. C) -1.5%. D) -2.5%.


A) 2.5%.
B) 1.5%.
C) -1.5%.
D) -2.5%.

Correct Answer:

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