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-Refer to Figure 13

Question 24

Multiple Choice

  -Refer to Figure 13.4. If AD<sub>1</sub> makes the inflation rate exceed the inflation target &61552;*, a tighter monetary policy ____ the interest rate and ________ the AD schedule ____. A)  raises, moves along, to the right B)  raises, shifts, to the left C)  lowers, moves along, to the left D)  lowers, shifts, to the right
-Refer to Figure 13.4. If AD1 makes the inflation rate exceed the inflation target &61552;*, a tighter monetary policy ____ the interest rate and ________ the AD schedule ____.


A) raises, moves along, to the right
B) raises, shifts, to the left
C) lowers, moves along, to the left
D) lowers, shifts, to the right

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