Monetary Policy Involves the Use of Money and Credit Controls

question 39

Multiple Choice

Monetary policy involves the use of money and credit controls to:

• A) Move the economy along the aggregate demand curve.
• B) Move the economy along the aggregate supply curve.
• C) Shift the aggregate demand curve.
• D) Shift the aggregate supply curve.

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Definitions:

Drainage Basin

An area in which all drainages merge into a single stream or other body of water.

Flow Response

The reaction or movement of a fluid, such as water or air, in response to external forces or conditions.

Rainfall

Precipitation in the form of water droplets that falls from clouds and is a crucial part of the water cycle sustaining ecosystems and human activities.

Hydrograph

A graph showing the change in the amount of flowing water (discharge) over time.