8. Which of the following sequence of events follows a contractionary monetary policy? a) money demand rises--interest rates fall--consumption & investment fall and real GDP falls b) money demand falls--interest rates rise--consumption & investment fall-real GDP falls c) money demand falls--interest rates fall---consumption & investment fall--real GDP falls d) money demand falls---interest rates rise--consumption & investment falls---real GDP rises

8. Which of the following sequence of events follows a contractionary monetary policy? a) money demand rises--interest rates fall--consumption & investment fall and real GDP falls b) money demand falls--interest rates rise--consumption & investment fall-real GDP falls c) money demand falls--interest rates fall---consumption & investment fall--real GDP falls d) money demand falls---interest rates rise--consumption & investment falls---real GDP rises

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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