Multiple Choice
Other things equal, a restrictive monetary policy during a period of demand-pull inflation will
A) lower the interest rate, increase investment, and reduce net exports.
B) lower the price level, increase investment, and increase aggregate demand.
C) increase productivity, aggregate supply, and real output.
D) increase the interest rate, reduce investment, and reduce aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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