The Best Description of the Cause-And-Effect Chain of a Contractionary

question 101

Multiple Choice

The best description of the cause-and-effect chain of a contractionary monetary policy in the short run is that it will

• A)lower the interest rate,increase investment spending,and increase real GDP.
• B)raise the interest rate,decrease investment spending,and decrease real GDP.
• C)lower the interest rate,lower investment spending,and decrease real GDP.
• D)raise the interest rate,decrease investment spending,and increase real GDP.
• E)raise the interest rate,increase investment spending,and decrease real GDP.

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