Everything else held constant,contractionary monetary policies will cause ________.
A)the quantity of aggregate demand to increase.
B)the quantity of aggregate demand to decrease.
C)aggregate demand to increase.
D)aggregate demand to decrease.

Question

Quizplus · Accepted Answer

Contractionary monetary policies are designed to decrease the money supply in the economy, which increases interest rates and decreases investment and consumption spending. This leads to a decrease in aggregate demand.

Everything Else Held Constant,contractionary Monetary Policies Will Cause ________