Multiple Choice
In a closed economy, a contractionary monetary policy causes:
A) interest rates to rise and aggregate demand to increase.
B) interest rates to fall and aggregate demand to decrease.
C) interest rates to rise and aggregate demand to decrease.
D) interest rates to fall and aggregate demand to increase.
E) interest rates to fall and aggregate demand to be unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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