Which of the Following Will Occur When the Central Bank

Multiple Choice

Which of the following will occur when the central bank pursues contractionary monetary policy?

A) A leftward shift in the money demand curve and a leftward shift in the money supply curve.
B) No shift in the money demand curve and a rightward shift in the money supply curve.
C) No shift in the money demand curve and a leftward shift in the money supply curve.
D) A leftward shift in the money demand curve and a rightward shift in the money supply curve.
E) A rightward shift in the money demand curve and a leftward shift in the money supply curve.