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    The Economics of Money Banking Study Set 4
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    Exam 25: Rational Expectations: Implications for Policy
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    An Anticipated Increase in the Money Supply Increases Short-Run Real
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An Anticipated Increase in the Money Supply Increases Short-Run Real

Question 8

Question 8

Multiple Choice

An anticipated increase in the money supply increases short-run real output by the largest amount in


A) the traditional model.
B) the new Keynesian model.
C) the new classical model.
D) all three models.

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