If autonomous spending falls, the central bank should lower its inflation target in order to stabilize inflation.

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"If autonomous spending falls, the central bank should lower its inflation target in order to stabilize inflation." Is this statement true, false, or uncertain? Explain your answer.

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The Economics of Money Banking and Financial Markets

ISBN: 978-0133836790

11th edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 03, 2017 04:09 AM

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If autonomous spending falls, the central bank should lower its inflation target in order to stabilize inflation.

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False If the central bank pursues stabilization policy it can stabiliz...View the full answer

The Economics of Money Banking and Financial Markets

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