In the basic New Keynesian Model, in a liquidity trap where initially there is a positive output gap and inflation is lower than the inflation target, forward guidance is a promise by the central bank of A. lower future output than would otherwise be optimal for the central bank. B. lower current output. C. higher future inflation than
In the basic New Keynesian Model, in a liquidity trap where initially there is a positive output gap and inflation is lower than the inflation target, forward guidance is a promise by the central bank of A. lower future output than would otherwise be optimal for the central bank. B. lower current output. C. higher future inflation than
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter36: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 4PA
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In the basic New Keynesian Model, in a liquidity trap where initially there is a positive output gap and inflation is lower than the inflation target, forward guidance is a promise by the central bank of
lower future output than would otherwise be optimal for the central bank.
lower current output.
higher future inflation than would otherwise be optimal for the central bank.
lower future inflation than would otherwise be optimal for the central bank.
lower current inflation.
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