The best description of the cause-and-effect chain of a contractionary monetary policy in the short run is that it will
A) lower the interest rate,increase investment spending,and increase real GDP.
B) raise the interest rate,decrease investment spending,and decrease real GDP.
C) lower the interest rate,lower investment spending,and decrease real GDP.
D) raise the interest rate,decrease investment spending,and increase real GDP.
E) raise the interest rate,increase investment spending,and decrease real GDP.
Correct Answer:
Verified
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