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Under sticky prices, an interest rate rise is associated with what?

Under sticky prices, an interest rate rise is associated with what?

Lower expected deflation and a long-run currency appreciation, so the currency appreciates immediately

Higher expected inflation and a long-run currency appreciation, so the currency appreciates immediately

Lower expected inflation and a long-run currency depreciation, so the currency appreciates immediately

Lower expected inflation and a long-run currency appreciation, so the currency appreciates immediately
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Finance-8368973.doc

Under sticky prices, an interest rate rise is associated with what?
Lower expected deflation and a long-run currency appreciation, so the currency appreciates
immediately
Higher expected inflation...

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