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An Upward Shift in the Fed's Reaction Function Is Equivalent

Question 117

Multiple Choice

An upward shift in the Fed's reaction function is equivalent to:


A) a decline in the Fed's long-term target for inflation.
B) an increase in the Fed's long-term target for inflation.
C) an upward shift of short-run aggregate supply.
D) a downward shift of short-run aggregate supply.

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