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    Exam 6: Financial Markets Ii: the Extended Is-Lm Model
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    Given the Zero Lower Bound on the Nominal Rate,the Lowest\( \pi^{\mathrm{e}} \)
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Given the Zero Lower Bound on the Nominal Rate,the Lowest πe \pi^{\mathrm{e}} πe

Question 7

Question 7

Multiple Choice

Given the zero lower bound on the nominal rate,the lowest real interest rate the central bank can achieve is


A) - πe \pi^{\mathrm{e}} πe
B) πe \pi^{\mathrm{e}} πe
C) 0)
D) i)

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