An Inflation Rate Above the Target Rate Will Result In

Multiple Choice

An inflation rate above the target rate will result in:

A) a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve.
B) a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
C) a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve.
D) a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve.