standard Keynesian economy with partially sticky prices.

price expectations exogenously rose. This will cause

• A.prices to rise by more than the rise in price expectations, and interest rates to fall
• B.prices to rise by less than the rise in price expectations, and interest rates to fall
• C.prices to rise by more than the rise in price expectations, and interest rates to rise
• D.prices to rise by less than the rise in price expectations, and interest rates to rise

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