6. A central bank can reduce inflation at the smallest cost if peoples expectations of inflation a....

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6. A central bank can reduce inflation at the smallest cost if people’s expectations of inflation

a. respond quickly to new policy regimes.

b. adjust slowly to changes in policy.

c. treat policy announcements as not being credible.

d. depend adaptively on past realizations of inflation.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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