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Suppose the Fed Engages in a Policy to Reduce the Inflation

Question 16

Multiple Choice

Suppose the Fed engages in a policy to reduce the inflation rate for any given level of real GDP. This would be depicted by a(n)


A) downward movement along the monetary policy line.
B) leftward shift of the monetary policy line.
C) upward movement along the monetary policy line.
D) rightward shift of the monetary policy line.
E) rightward shift of the AD curve.

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