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If the Central Bank Determines That Aggregate Demand Is Not

Question 167

Multiple Choice

If the central bank determines that aggregate demand is not very sensitive to changes in the interest rate,


A) the monetary policy rule line will shift up.
B) the monetary policy rule line will become steeper.
C) the monetary policy rule line will shift down.
D) there will be movement along the monetary policy rule line.
E) the monetary policy rule line will become flatter.

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