Homework Clinic
Social Science Clinic => Economics => Macroeconomics => Topic started by: roselinechinyere27m on Jan 2, 2020
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According to the Friedman-Lucas money surprise model, when the inflation rate is equal to the expected inflation rate, then
◦ interest rates rise.
◦ output is equal to trend output.
◦ interest rates fall.
◦ the trade balance improves.
◦ the value of the domestic exchange rate rises.
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output is equal to trend output.