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A Decrease in the Inflation Target by the Central Bank

Question 92

Multiple Choice

A decrease in the inflation target by the central bank would:


A) have no impact on the positioning of the dynamic aggregate demand curve.
B) cause the dynamic aggregate demand curve to shift to the left.
C) cause the dynamic aggregate demand curve to shift to the right.
D) be reflected by a movement down and along the existing dynamic aggregate demand curve.

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