Business, 20.12.2019 00:31 jillian0013

In flosserland, the department of finance is responsible for monetary policy. flosserland has had an inflation rate of 25% for many years. refer to monetary policy in flosserland. suppose that the flosserland department of finance undertakes a public relations campaign to convince people that it will soon change monetary policy to reduce inflation to 12.5%. if flosserlanders believe their government then which, if any, curve(s) shift left
a. unemployment falls, but it would have fallen less if people had been expecting 25% inflation.
b. unemployment rises, but it would have risen less if people had been expecting 12.5% inflation.
c. unemployment falls, but it would have fallen less if people had been expecting 12.5% inflation.
d. unemployment rises, but it would have risen less if people had been expecting 25% inflation.

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In flosserland, the department of finance is responsible for monetary policy. flosserland has had an...

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