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The monetary policy makers in Freedonia wish to stabilize output at its full employment value and to stabilize the price le vel. In which of

The monetary policy makers in Freedonia wish to stabilize output at its full

employment value and to stabilize the price le vel. In which of the following shocks will

these goals be in conflict?

A. An exogenous increase in consumption.

B. An exogenous decrease in investment.

C. Any change in government purchases.

D. An increase in expected inflation.

E. None of the above.

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