Beginning from a Position of Long-Run Equilibrium,a Contractionary Monetary Policy

question 103

Multiple Choice

Beginning from a position of long-run equilibrium,a contractionary monetary policy by the Bank of Canada causes

• A)aggregate demand for goods and services to exceed potential output.
• B)potential output to exceed aggregate demand for goods and services.
• C)a fall in most market interest rates.
• D)an increase in the general price level.
• E)an increase in potential output.

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Definitions:

Particular Target

A specific objective or item that is singled out for attention or action.

Good Neighbor Policy

A foreign policy of the United States, initiated by President Franklin D. Roosevelt in the 1930s, aimed at strengthening friendly relations and mutual defense with the countries of Latin America.

Franklin D Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for leading the country during the Great Depression and World War II with policies including the New Deal.