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Exhibit 24-4 -If the Central Bank Changes Its Monetary Policy Rule from Policy

Question 114

Multiple Choice

Exhibit 24-4 Exhibit 24-4 -If the central bank changes its monetary policy rule from A to B as shown in Exhibit 24-4, A) the AD curve will shift to the right. B) there will be a downward movement along the AD curve. C) the AD curve will shift to the left. D) there will be an upward movement along the AD curve. E) there will be no change since the real rate of interest does not change.
-If the central bank changes its monetary policy rule from A to B as shown in Exhibit 24-4,


A) the AD curve will shift to the right.
B) there will be a downward movement along the AD curve.
C) the AD curve will shift to the left.
D) there will be an upward movement along the AD curve.
E) there will be no change since the real rate of interest does not change.

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