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stuck on following Question 21 1 pts If m = 0.4 in the simple monetary policy rule and the inflation rate falls by 2 percentage

stuck on following

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Question 21 1 pts If m = 0.4 in the simple monetary policy rule and the inflation rate falls by 2 percentage points, the Federal Reserve will change the nominal interest rate by percentage points. (Hint: Combine the simple monetary policy rule with the Fisher equation to answer this question.) Question 22 1 pts In the standard AS-AD framework, after a positive one-period inflation shock at time t (that is, o, = 0 for all times 7 >> t), the economy will move to a new equilibrium with Ant = Att1 - Wt = 0 because O the AS curve immediately shifts such that the AS and AD curves intersect at Y's = 0. Any shock is offset completely by an opposing inflation shock. O the AD curve shifts each period. Changes in the rate of inflation are matched by changes in the demand parameter a. O the AS curve gradually shifts in the direction of Y = 0. Changes in inflation affect the intercept of the AS curve. O the AD curve adjusts over time. Changes in expected inflation move the intercept term of the AD curve. O the AS curve never shifts in response to shocks in the economy

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