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When a Financial Friction Is Added to the MP Curve Rtrˉ=fˉ+mˉ(πtπˉ)R _ { t } - \bar { r } = \bar { f } + \bar { m } \left( \pi _ { t } - \bar { \pi } \right)

Question 23

Multiple Choice

When a financial friction is added to the MP curve we have:


A) Rtrˉ=fˉ+mˉ(πtπˉ) R _ { t } - \bar { r } = \bar { f } + \bar { m } \left( \pi _ { t } - \bar { \pi } \right)
B) Rt=fˉ+mˉ(πtπˉ) R _ { t } = \bar { f } + \bar { m } \left( \pi _ { t } - \bar { \pi } \right)
C) Rtrˉ=fˉmˉ(πtπˉ) R _ { t } - \bar { r } = \bar { f } - \bar { m } \left( \pi _ { t } - \bar { \pi } \right)
D) Y~t=aˉbˉfˉ+bˉmˉ(πtπˉ) \tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { f } + \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)
E) Y~t=aˉbˉmˉ(πtπˉ) \tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)

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