Contractionary Monetary Policy

question 40

Multiple Choice

Contractionary monetary policy:

• A) increases aggregate demand.
• B) increases aggregate supply.
• C) works by discouraging investment spending.
• D) decreases interest rates.

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Definitions:

Closed Shops

A workplace where only members of a union are hired and maintained, often established through labor union and employer agreements.

Union Shops

Workplaces where employees don't have to be union members to be hired, but must join the union within a certain period.

Union Members

Individuals who belong to a labor union, an organization that represents workers' interests in negotiations with employers regarding wages, working conditions, and benefits.

States

Politically organized territories with defined geographic boundaries, governed by their own governments and laws.