Movement along or a shift in monetary policy reaction curve

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Reference no: EM131223254

State whether each of the following will result in a movement along or a shift in the monetary policy reaction curve and in which direction the effect will be.

a. Policymakers increase the real interest rate in response to a rise in current inflation.

b. Policymakers increase their inflation target.

c. The long-run real interest rate falls.

Reference no: EM131223254

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