How is the effect of a contractionary monetary policy depicted in an aggregate supply-aggregate demand graph?
A) The aggregate supply curve shifts right.
B) The aggregate supply curve shifts left.
C) The aggregate demand curve shifts left.
D) The equilibrium level of income decreases, but neither curve shifts.
Correct Answer:
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Q1: Which one of the following statements is
Q2: The tool of monetary policy that is
Q3: If the prevailing rate of interest in
Q4: Which of the following tools does the
Q5: Increases in the discount rate
A) encourage banks
Q7: When the Fed implements an expansionary monetary
Q8: The goal of expansionary monetary policy is
A)
Q9: The goal of contractionary monetary policy is
A)
Q10: If the Fed increases the reserve requirement,
A)
Q11: If the Fed decreases the reserve requirement,
A)
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