In the simple monetary policy rule

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True or False

1. In the simple monetary policy rule, a large m means that the central bank is aggressive fighting inflation.

2. If the monetary policy parameter m changes, there is a movement along the AS curve.

3. When the Federal Reserve lowers the nominal interest rate to zero, the real rate is.

4. If British incomes rose, this would be reflected in the short-run model as a shift in the United States AS to the right.

Reference no: EM131194486

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