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To Reduce Inflation in an Economy at Full Employment,the Central

Question 93

Multiple Choice

To reduce inflation in an economy at full employment,the central bank must shift the monetary policy rule


A) upward,causing the ADI curve to shift leftward.
B) upward,causing the ADI curve to shift rightward.
C) downward,causing the ADI curve to shift leftward.
D) downward,causing the ADI curve to shift rightward.
E) upward,causing the IA line to shift upward.

Correct Answer:

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