The New Keynesians Emphasize the Importance of

question 246

Multiple Choice

The new Keynesians emphasize the importance of

• A)rational expectations.
• B)the monetary growth rule.
• C)real causes of the business cycle.
• D)sticky wages and prices.

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Definitions:

Compounded Quarterly

The calculation of interest on the principal amount and any accumulated interest four times a year.

Compounded Semi-annually

Interest calculation method that adds interest to the principal sum twice a year, resulting in interest accumulation on interest already accrued.

Compounded Semi-annually

An interest calculation method where interest is calculated and added to the principal twice a year.

Strip Bond

A financial instrument representing debt, where the main amount and the interest payments have been separated and are traded independently.