According to New Keynesians, an Increase in Which of the Following

question 319

Multiple Choice

According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?

• A) anticipated future inflation
• B) firms' average inflation adjusted per-unit costs of production
• C) an unexpected increase in aggregate demand
• D) all of the above

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Compounded semi-annually

The process of adding interest to the principal sum of a loan or deposit, or "compounding," twice each year.

Deferral period

The time span during which payments or obligations are postponed or delayed.

Registered Retirement Savings Plan

A type of Canadian account for holding savings and investment assets, aimed at facilitating retirement savings.