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    Macroeconomics Understanding the Global Economy
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    Exam 13: Monetary Policy
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    A Reduction in the Money Supply
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A Reduction in the Money Supply

Question 30

Question 30

Multiple Choice

A reduction in the money supply


A) reduces both interest rates and GDP
B) pushes the LM curve down
C) pushes the LM curve inward
D) shifts the IS curve outward
E) flattens the slope of the LM curve

Correct Answer:

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