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For a Fixed Inflation Rate Target, a Decrease in the Inflation

Question 33

Multiple Choice

For a fixed inflation rate target, a decrease in the inflation rate corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.


A) shift left of; movement up
B) movement up; shift right of
C) shift left of; shift right of
D) movement down; shift left of

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