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With COLAs in Effect,if the Fed Wishes to Avoid a Permanent

question 23

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With COLAs in effect,if the Fed wishes to avoid a permanent acceleration of inflation after a permanent adverse supply shock,it


Definitions:

Collateralized Debt Obligations

A type of structured asset-backed security (ABS) with multiple layers of debt obligations typically secured by a pool of loans or other assets.

Promissory Note

A financial instrument comprising a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Financial Asset

An intangible asset representing a claim on future benefits or returns, examples include stocks, bonds, and bank deposits.

Real Asset

Physical or tangible assets that have value due to their substance and properties.

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