For a Fixed Inflation Rate Target, an Increase in the Inflation

question 145

Multiple Choice

For a fixed inflation rate target, an increase in the inflation rate corresponds to a ________ the aggregate demand curve and an increase in exogenous spending corresponds to a ________ the aggregate demand curve.

• A)shift left of; movement up
• B)movement up; shift right of
• C)shift left of; shift right of
• D)movement up; movement down

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