Contractionary monetary policy ________ interest rates,causing ________ to shift to the ________.
A) lowers; aggregate demand; right
B) lowers; aggregate demand; left
C) raises; aggregate demand; right
D) raises; aggregate demand; left
E) lowers; short-run aggregate supply; right

Question

Quizplus · Accepted Answer

Contractionary monetary policy raises interest rates, which typically reduces consumer and business spending, causing aggregate demand to shift to the left.

Contractionary Monetary Policy ________ Interest Rates,causing ________ to Shift to the ________

Contractionary Monetary Policy Interest Rates,causing to Shift to the