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What Would Be the Ultimate Effect of a Reduction in the Money

Question 194

Multiple Choice

What would be the ultimate effect of a reduction in the money supply?


A) a leftward shift of the aggregate demand curve
B) a rightward shift of the short-run aggregate supply curve
C) a movement upward along the aggregate demand curve
D) a movement downward along the aggregate demand curve
E) such a monetary policy would have no impact at all

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