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    Macroeconomics Study Set 9
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    Exam 11: The Is-Mp Model: Adding Inflation and the Open Economy
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    Assume the Expected Inflation for This Year Was 2%,but the Actual
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Assume the Expected Inflation for This Year Was 2%,but the Actual

Question 7

Question 7

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Assume the expected inflation for this year was 2%,but the actual inflation turned to be 6%.What are the implications of this unanticipated inflation on:
a) your salary?
b) your student loan?

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a) If you and your employer both expecte...

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