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During the Vietnam War, Monetary Policy Officials Reacted to the Increases

Question 3

Multiple Choice

During the Vietnam War, monetary policy officials reacted to the increases in aggregate demand resulting from military expenditures by:


A) not shifting the monetary policy reaction function.
B) dramatically slowing money growth.
C) shifting the monetary policy reaction curve to the left.
D) keeping the same inflation target and raising the real interest rates.

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