Multiple Choice
If monetary policymakers do not want an increase in government purchases, which increases aggregate demand, to cause an increase in inflation, they would:
A) shift the monetary policy reaction curve to the right, raising inflation at every real interest rate.
B) do nothing and let the economy's self-correcting mechanism work.
C) shift the monetary policy reaction function left, increasing the real interest rate at every rate of inflation.
D) increase the growth rate of money.
Correct Answer:

Verified
Correct Answer:
Verified
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