Question: In the basic New Keynesian model, when there is a liquidity trap, if the central bank promises a higher inflation in the future, we should

In the basic New Keynesian model, when there is a liquidity trap, if the central bank promises a higher inflation in the future, we should expect that ___________

A.output rises and inflation rises.

B.output falls and inflation rises.

C.output falls and inflation falls.

D.output and inflation stay the same.

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