Describe the Effects of Contractionary Monetary Policy by the Domestic

question 94

Essay

Describe the effects of contractionary monetary policy by the domestic central bank on output,the real interest rate,and net exports in both the domestic and foreign country,using a Keynesian model in the short run.What happens in the long run? Show a diagram to illustrate the short-run and long-run effects in both countries.

---

Definitions:

Mass Spectrum

A graph or chart that displays the distribution of ions by mass in a sample, providing information about the molecular weight and structure of compounds.

Cyclopentanol

A cyclic alcohol with the formula C5H9OH, characterized by a five-membered ring structure with an attached hydroxyl group.

Peak

The highest point or maximum value of a graph, often used in reference to spectra in analytical chemistry indicating a specific property.

C=C Stretching Frequency

Refers to the frequency at which the carbon-carbon double bonds in a molecule vibrate, typically observed in infrared spectroscopy.