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Starting from a Long-Run Equilibrium,immediate or Eventual Decreases in the Rate

Question 66

Multiple Choice

Starting from a long-run equilibrium,immediate or eventual decreases in the rate of inflation may be the result of any of the following EXCEPT

A) a downward inflation shock.
B) an upward inflation shock.
C) a decrease in government purchases.
D) a monetary "tightening."
E) a tax increasE.

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