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Assuming That All Else Remains Constant, Contractionary Monetary Policy Causes

Question 62

Multiple Choice
Assuming that all else remains constant, contractionary monetary policy causes aggregate demand to:

Assuming that all else remains constant, contractionary monetary policy causes aggregate demand to:


A) rise by less than it otherwise would have and the price level to rise by less than it otherwise would have.
B) fall by less than it otherwise would have and the price level to rise by less than it otherwise would have.
C) rise by more than it otherwise would have and the price level to rise by less than it otherwise would have.
D) fall by more than it otherwise would have and the price level to rise by more than it otherwise would have.

Correct Answer:

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