The Medium-Run Effect of a Monetary Policy That Seeks to Lower

question 129

Multiple Choice

The medium-run effect of a monetary policy that seeks to lower the rate of inflation is best depicted by

• A)the AD curve shifting to the right.
• B)an upward movement of the IA line.
• C)an upward movement along the AD curve.
• D)a downward movement along the AD curve.
• E)the AD curve shifting to the left.

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