(Figure: Changing Money Supply) What Do Graphs 'A' and 'B

question 48

Multiple Choice

(Figure: Changing Money Supply) What do graphs 'A' and 'B' represent for an economy?

• A) "A" represents an expansionary monetary policy; "B" represents a contractionary monetary policy
• B) "A" represents a contractionary monetary policy; "B" represents an expansionary monetary policy
• C) "A" represents an economy moving out of an inflationary boom; "B" represents an economy moving out of a recession
• D) "A" represents a decrease in money demand; "B" represents an increase in money demand

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