Change inflationary expectations

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Reference no: EM131096828

Please explain each in details (100 _~150 words)

At times, the Federal Reserve tries to change inflationary expectations. Why would the Fed want to raise inflationary expectations? How would this strategy of raising inflationary expectations affect consumption and investment? Be sure to tie your answer back to the two-period consumption model and the uc/MPKf model.

Reference no: EM131096828

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