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Please explain. According to the traditional channel of monetary policy if the Central Bank decreases in inflation expectations, O real interest rates will decrease and

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According to the traditional channel of monetary policy if the Central Bank decreases in inflation expectations, O real interest rates will decrease and aggregate demand will increase. O both real interest rates and aggregate demand increase. O real interest rates will increase and aggregate demand will decrease. O nothing will happen to real interest rates or aggregate demand.One lesson for monetary policy coming out of the financial crisis is that O asset prices such as stock prices matter for the broader economy. changes in short-term interest rates always reflect the status of monetary policy. O stable prices have no relevance to the long-run. O monetary policy is ineffective when interest rates are near zero.If inflation is 2%, the output gap is 2%, the equilibrium real interest rate is 0%, and the central bank desires 2% inflation, then the Taylor Rule suggests the federal funds rate target should be C} 3% C} 1% {i} 2% @096

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