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In the Case of a Negative Shock to Aggregate Demand,the

Question 220

Multiple Choice

In the case of a negative shock to aggregate demand,the central bank should:


A) decrease the rate of growth of the money supply to control inflation.
B) increase the rate of growth of the money supply to restore spending growth.
C) decrease the rate of growth of the price level to keep real growth high.
D) do nothing.

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