Which of the Following Would Be Most Indicative of a Shift

question 19

Multiple Choice

Which of the following would be most indicative of a shift to a more restrictive monetary policy?

• A) Rapid expansion in the monetary base, higher  short-term interest rates, and  a decline in the growth rate of the M1 money supply.
• B) Rapid expansion in the monetary base, declining  short-term  interest rates, and  an increase in the growth rate of the M2 money supply.
• C) A reduction in the monetary base, higher  short-term  interest rates, and a decline in the growth rate of the M2 money supply.
• D) A reduction in the monetary base, lower short-term interest rates, and a decline in the growth rate of the M1 money supply.

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