Business, 01.03.2021 21:50 savthespice

To enact Contractionary Monetary Policy, the central bank will buy/ sell bonds. This increase/decrease the amount of cash in the economy. This will cause bond prices to fall/ stay the same/ rise, and interest rates to fall/ stay the same/ rise. The change in interest rates causes investment and consumption to fall/ stay the same/ rise, shifting Short-Run Aggregate Supply/ Aggregate Demand/ Long-Run Aggregate Supply (outwards/ inwards).

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To enact Contractionary Monetary Policy, the central bank will buy/ sell bonds. This increase/decrea...

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