Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 35

A successful restrictive monetary policy is evidenced by a shift in the money supply curve from:
A) S m 3 to S m 2 , an increase in investment from $20 billion to $25 billion, and a decline in aggregate demand from AD 3 to AD 2.
B) S m 1 to S m 2 , an increase in investment from $20 billion to $25 billion, and an increase in real GDP from Q 1 to Q f.
C) S m 3 to S m 2 , a decrease in investment from $25 billion to $20 billion, and a decline in the price level from P 3 to P 2.
D) S m 3 to S m 2 , a decrease in investment from $25 billion to $20 billion, and an increase in aggregate demand from AD 2 to AD 3.