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If the Fed Orders a Contractionary Monetary Policy,describe What Will

Question 260

Essay

If the Fed orders a contractionary monetary policy,describe what will happen to the following variables relative to what would have happened without the policy:
a.The money supply
b.Interest rates
c.Investment
d.Consumption
e.Net Exports
f.The aggregate demand curve
g.Real GDP
h.The price level

Correct Answer:

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a.The money supply decreases b.Interest ...

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